4 Apr 2014
USD/CAD supported near 1.0960
FXStreet (Edinburgh) - The steep pullback in the USD/CAD seems to have bottomed out in sub-1.0960 levels on Friday, now attempting to regain the key 1.10 handle.
USD/CAD lower on data
The CAD sharply appreciated vs. its southern neighbour after the Canadian jobless rate eased a tad to 6.9% during March, following an unexpected increase of the employment change by 42.9K vs. 20K forecasted. Further upbeat data also saw the Ivey PMI rising to 61.8 in last month from 57.8. “The breakdown from the pennant formation that formed up through late March/early April suggests the potential at least for a repeat of the 270 tick decline from above 1.12 that preceded it. From the breakdown point, that implies scope for a drop to the mid 1.07s over the next couple of weeks”, observed Shaun Osborne, Chief FX Strategist at TD Securities.
USD/CAD relevant levels
The pair is now retreating 0.42% at 1.0988 with the next support at 1.0955 (low Mar.6) ahead of 1.0911 (low Feb.19) and finally 1.0905 (low Jan.16). On the upside, a breakout of 1.1078 (high Mar.28) would open the door to 1.1095 (weekly Tenkan Sen) and finally 1.1106 (high Mar.27).
USD/CAD lower on data
The CAD sharply appreciated vs. its southern neighbour after the Canadian jobless rate eased a tad to 6.9% during March, following an unexpected increase of the employment change by 42.9K vs. 20K forecasted. Further upbeat data also saw the Ivey PMI rising to 61.8 in last month from 57.8. “The breakdown from the pennant formation that formed up through late March/early April suggests the potential at least for a repeat of the 270 tick decline from above 1.12 that preceded it. From the breakdown point, that implies scope for a drop to the mid 1.07s over the next couple of weeks”, observed Shaun Osborne, Chief FX Strategist at TD Securities.
USD/CAD relevant levels
The pair is now retreating 0.42% at 1.0988 with the next support at 1.0955 (low Mar.6) ahead of 1.0911 (low Feb.19) and finally 1.0905 (low Jan.16). On the upside, a breakout of 1.1078 (high Mar.28) would open the door to 1.1095 (weekly Tenkan Sen) and finally 1.1106 (high Mar.27).