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27 Feb 2014
USD/CAD toying with 1.1150
FXStreet (Edinburgh) - The USD/CAD is confirming its bounce off Tuesday’s lows near 1.1050, breaking above the overnight consolidation pattern and flirting with the 1.1150 level.
USD/CAD bullishness intact
It seems the pair is resuming its more ample bullish trend after recent pullbacks were well contained near 1.0900 the figure. The dovish stance from the BoC plus a renewed strength surrounding the greenback as of late would be behind the current correction higher. Today’s wider current account deficit in Canada would not be helping the CAD either. “We are expecting the pair to hold off from another test of 1.120 through tomorrow’s GDP data. Month-end and ‘risk-off’ should reduce the desire to add aggressively to the already ‘short CAD’ bias, and downside risks to the December GDP data should already be largely ‘in the price’. We still look for key support down in the 1.1025-1.105 range”, commented Stephen Gallo, European Head FX Strategy at BMO.
USD/CAD key levels
The pair is now up 0.17% at 1.1146 with the next resistance at 1.1160 (high Feb.27) ahead of 1.1225 (2014 high Jan.31). On the downside, a break below 1.1117 (low Feb.27) would target 1.1074 (low Feb.26) en route to 1.1058 (10-d MA).
USD/CAD bullishness intact
It seems the pair is resuming its more ample bullish trend after recent pullbacks were well contained near 1.0900 the figure. The dovish stance from the BoC plus a renewed strength surrounding the greenback as of late would be behind the current correction higher. Today’s wider current account deficit in Canada would not be helping the CAD either. “We are expecting the pair to hold off from another test of 1.120 through tomorrow’s GDP data. Month-end and ‘risk-off’ should reduce the desire to add aggressively to the already ‘short CAD’ bias, and downside risks to the December GDP data should already be largely ‘in the price’. We still look for key support down in the 1.1025-1.105 range”, commented Stephen Gallo, European Head FX Strategy at BMO.
USD/CAD key levels
The pair is now up 0.17% at 1.1146 with the next resistance at 1.1160 (high Feb.27) ahead of 1.1225 (2014 high Jan.31). On the downside, a break below 1.1117 (low Feb.27) would target 1.1074 (low Feb.26) en route to 1.1058 (10-d MA).