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28 Feb 2014
USD/CAD keeps falling, 1.1050 on sight
FXStreet (Edinburgh) - The USD/CAD is now intensifying the intraday decline, threatening to extend the sell-off to the vicinity of 1.1150.
USD/CAD hurt by data
The pair is now navigating the area of 3-day lows around 1.1070/60 after contrasting data releases from the US and Canadian dockets: the economic activity in the US economy expanded less than estimates 2.4% YoY while the Canadian counterpart grew 2.9%, beating its forecasts. Further results showed that PCE, Chicago PMI and the Reuters/Michigan index came in above expectations, while Pending Home Sales expanded a meagre 0.1% vs. the median at 2.0%. “In view of the very positive price signals (daily and weekly) seen last week and the bullish alignment of trend signals still evident on the longer-term (daily, weekly, monthly) charts, we remain bullish and look for limited downside in funds from here (40-day MA at 1.1004 should be firm daily support). Weakness below 1.0900/10 now would be more of a concern from a technical point of view and would indicate the risk of a deeper retracement”, signalled Shaun Osborne, Chief FX Strategist at TD Securities.
USD/CAD key levels
At the moment the pair is losing 0.59% at 1.1070 with the next support at 1.1055 (low Feb.25) ahead of 1.1050 (low Feb.24). On the upside, a surpass of 1.1145 (high Feb.26) would aim for 1.1160 (high Feb.27) and then 1.1225 (2014 high Jan.31).
USD/CAD hurt by data
The pair is now navigating the area of 3-day lows around 1.1070/60 after contrasting data releases from the US and Canadian dockets: the economic activity in the US economy expanded less than estimates 2.4% YoY while the Canadian counterpart grew 2.9%, beating its forecasts. Further results showed that PCE, Chicago PMI and the Reuters/Michigan index came in above expectations, while Pending Home Sales expanded a meagre 0.1% vs. the median at 2.0%. “In view of the very positive price signals (daily and weekly) seen last week and the bullish alignment of trend signals still evident on the longer-term (daily, weekly, monthly) charts, we remain bullish and look for limited downside in funds from here (40-day MA at 1.1004 should be firm daily support). Weakness below 1.0900/10 now would be more of a concern from a technical point of view and would indicate the risk of a deeper retracement”, signalled Shaun Osborne, Chief FX Strategist at TD Securities.
USD/CAD key levels
At the moment the pair is losing 0.59% at 1.1070 with the next support at 1.1055 (low Feb.25) ahead of 1.1050 (low Feb.24). On the upside, a surpass of 1.1145 (high Feb.26) would aim for 1.1160 (high Feb.27) and then 1.1225 (2014 high Jan.31).