USD/CAD supported by US data

FXstreet.com (Córdoba) - The USD/CAD spiked to fresh daily highs in the wake of US housing figures, but gains were short-lived with the pair quickly pulling back to pre-data levels.

The USD/CAD reached a 2-day high of 1.0973 but failed to sustain gains and retreated to the 1.0950 zone before US consumer confidence gave the pair another boost. At time of writing, the USD/CAD is trading around 1.0965, recording a 0.3% gain on the day.

USD/CAD technical outlook

"Downside risks for USDCAD are fairly limited from here as 1.0810/50 is a major support zone now", says the TD Securities team. "Short-term patterns look constructive again for USDCAD after the market bounced from the low 1.09 area yesterday. Intraday, look for support around 1.0925/30 initially and for gains to pick up above 1.0955/60".

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