USD/CAD unstoppable (on the downside), breaches 1.42

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Jan 22, 2016.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

    Oct 7, 2015
    Likes Received:
    FXStreet (Edinburgh) - The Canadian dollar is sharply higher vs. its American counterpart on Friday, pushing USD/CAD to test levels below the 1.4200 handle.

    USD/CAD weaker ahead of CAD data

    The demand for the Canadian dollar is accelerating today following the strong rally in crude oil prices, where the barrel of West Texas Intermediate is now advancing nearly 5% and flirting with the $31.00 mark.

    The pair is retreating for the third session in a row after hitting 13-year highs just below the 1.4700 handle on Tuesday, all ahead of the release of key Canadian inflation figures and US Markit’s manufacturing PMI and Existing Home Sales.

    USD/CAD significant levels

    As of writing the pair is losing 0.70% at 1.4179 and a break below 1.4100 (psychological level) would aim for 1.3806 (3-month uptrend) and finally 1.3754 (55-day sma). On the other hand, the next resistance is located at 1.4692 (high Jan.20) followed by 1.4946 (high Apr.7 2003) and then 1.5000 (psychological handle).
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