8 Jul 2014
USD/CAD targets 1.07 handle
FXStreet (Guatemala) - USD/CAD is trading at 1.0672, down -0.11% on the day, having posted a daily high at 1.0696 and low at 1.0659.
USD/CAD has made hard work of the upper end in the 1.06 handle. Analysts at Rabobank note that the FOMC Minutes from the June 17-18 meeting tomorrow and Canadian employment numbers on Friday are the key events to watch this week, ahead of the BoC's FAD next week. “Our expectation for a below consensus employment reading – although one that show should a better balance between temporary and full employment – should continue to fuel the move higher in USD/CAD ahead of the Bank's announcement. A close to the week in the mid- to high-1.07s appears reasonable under that scenario. On the latter, we still see plenty of room for monetary policy makers to strike a cautious tone, despite the recent uptick in inflation, and this should further consolidate the move higher in funds."
USD/CAD Levels
With spot trading at 1.0672, we can see next resistance ahead at 1.0678 (Hourly 20 EMA), 1.0684 (Daily Open), 1.0684 (Weekly High), 1.0685
(Yesterday's High) and 1.0694 (Weekly Classic R1). Support below can be found at 1.0666 (Hourly 200 SMA), 1.0665 (Daily Classic PP), 1.0659 (Daily Low), 1.0659 (Hourly 100 SMA) and 1.0656 (Weekly Classic PP).
USD/CAD has made hard work of the upper end in the 1.06 handle. Analysts at Rabobank note that the FOMC Minutes from the June 17-18 meeting tomorrow and Canadian employment numbers on Friday are the key events to watch this week, ahead of the BoC's FAD next week. “Our expectation for a below consensus employment reading – although one that show should a better balance between temporary and full employment – should continue to fuel the move higher in USD/CAD ahead of the Bank's announcement. A close to the week in the mid- to high-1.07s appears reasonable under that scenario. On the latter, we still see plenty of room for monetary policy makers to strike a cautious tone, despite the recent uptick in inflation, and this should further consolidate the move higher in funds."
USD/CAD Levels
With spot trading at 1.0672, we can see next resistance ahead at 1.0678 (Hourly 20 EMA), 1.0684 (Daily Open), 1.0684 (Weekly High), 1.0685
(Yesterday's High) and 1.0694 (Weekly Classic R1). Support below can be found at 1.0666 (Hourly 200 SMA), 1.0665 (Daily Classic PP), 1.0659 (Daily Low), 1.0659 (Hourly 100 SMA) and 1.0656 (Weekly Classic PP).