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19 Feb 2014
USD/CAD jumps above 1.0975 after economic data
FXStreet (San Francisco) - The mix of weaker than expected US and Canadian data has fed even more the USD/CAD rally from 1-month low of 1.0910 to reach levels close to 1.1000.
Housing permits and starts decline more than expected in January; starts posted its biggest single month decline since 2011. In the same line, PPI rose 0.2% MoM in January, more than expected. In Canada, wholesale sales drop 1.4%, worse than 0.5% decline expected by market.
USD/CAD sentiment
Following the data, the USD/CAD jumped around 50 pips in matter of minutes to extend rally above the 1.0975 resistance and to trade around 1.0990. With 0.30% daily gains, the short term perspective remains slightly bullish according to the FXStreet trend index in the 15-minute chart. MACD, CCI and Momentum are pointing to the north while the Stochastic is bearish.
If the pair breaks above 1.1000 key level, next resistances would be at 1.1015 and 1.1025. On the downside, supports are now at 1.0970, 1.0940 and today's low at 1.0910.
Housing permits and starts decline more than expected in January; starts posted its biggest single month decline since 2011. In the same line, PPI rose 0.2% MoM in January, more than expected. In Canada, wholesale sales drop 1.4%, worse than 0.5% decline expected by market.
USD/CAD sentiment
Following the data, the USD/CAD jumped around 50 pips in matter of minutes to extend rally above the 1.0975 resistance and to trade around 1.0990. With 0.30% daily gains, the short term perspective remains slightly bullish according to the FXStreet trend index in the 15-minute chart. MACD, CCI and Momentum are pointing to the north while the Stochastic is bearish.
If the pair breaks above 1.1000 key level, next resistances would be at 1.1015 and 1.1025. On the downside, supports are now at 1.0970, 1.0940 and today's low at 1.0910.