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16 May 2014
USD/CAD directionless around 1.0870
FXStreet (Edinburgh) - Quite a choppy session for the USD/CAD on Friday, navigating in a 20-pip range between 1.0870 and 1.0890 so far.
USD/CAD supported at 1.0800
After hitting multi-month lows in the vicinity of 1.0800 the figure, spot now looks to consolidate in the high 1.08s against the backdrop of better sentiment around the greenback. In the data front, US Building Permits and Housing Starts came in above estimates while the Reuters/Michigan surprised to the downside for the month of May. “There are positive price signs—such as the USD’s inability to sustain losses below 1.0875/80 and yesterday’s bullish “hammer” candle. There is also the broader (potential) bull wedge pattern has formed up over the past few weeks—which implies a resumption of the broader move up above 1.0920 currently”, observed Shaun Osborne, Chief FX Strategist at TD Securities.
USD/CAD relevant levels
At the moment the pair is retreating 0.08% at 1.0875 with the immediate support at 1.0814 (low May 8) followed by 1.0762 (low Jan.8) and finally 1.0737 (high Dec.20). On the upside, a surpass of 1.0934 (Kijun Sen) would aim for 1.0961 (high May 6) and then 1.0980 (21-w MA).
USD/CAD supported at 1.0800
After hitting multi-month lows in the vicinity of 1.0800 the figure, spot now looks to consolidate in the high 1.08s against the backdrop of better sentiment around the greenback. In the data front, US Building Permits and Housing Starts came in above estimates while the Reuters/Michigan surprised to the downside for the month of May. “There are positive price signs—such as the USD’s inability to sustain losses below 1.0875/80 and yesterday’s bullish “hammer” candle. There is also the broader (potential) bull wedge pattern has formed up over the past few weeks—which implies a resumption of the broader move up above 1.0920 currently”, observed Shaun Osborne, Chief FX Strategist at TD Securities.
USD/CAD relevant levels
At the moment the pair is retreating 0.08% at 1.0875 with the immediate support at 1.0814 (low May 8) followed by 1.0762 (low Jan.8) and finally 1.0737 (high Dec.20). On the upside, a surpass of 1.0934 (Kijun Sen) would aim for 1.0961 (high May 6) and then 1.0980 (21-w MA).