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4 Feb 2015
USD/CAD bull run halted at 1.2600
FXStreet (Edinburgh) - The greenback continues to trim Tuesday’s pullback vs. the Canadian dollar, now pushing USD/CAD back to the boundaries of the 1.2600 handle.
USD/CAD follows CAD weakness
Despite the better tone in the risk appetite during the first half of the week and the current rebound in crude oil prices, the Canadian dollar could not sustain its advance vs. the dollar, sending spot back to test the upper-1.2500s. Adding to the offered tone, the Canadian PMI tracked by Ivey retreated significantly to 45.4 during January from 55.4 and 53.9 forecasted.
In the view of strategists at TD Securities, “A period of rangey trade may lie ahead before the bull trend gets back on track technically”.
USD/CAD key levels
The pair is now advancing 1.33% at 1.2561 and a surpass of 1.2600 (psychological level) would aim for 1.2643 (high Feb.3) and then 1.2700 (psychological level). On the flip side, the initial support lines up at 1.2353 (low Feb.3) ahead of 1.2314 (low Jan.22) and finally 1.2286 (23.6% of 1.0620-1.2800).
USD/CAD follows CAD weakness
Despite the better tone in the risk appetite during the first half of the week and the current rebound in crude oil prices, the Canadian dollar could not sustain its advance vs. the dollar, sending spot back to test the upper-1.2500s. Adding to the offered tone, the Canadian PMI tracked by Ivey retreated significantly to 45.4 during January from 55.4 and 53.9 forecasted.
In the view of strategists at TD Securities, “A period of rangey trade may lie ahead before the bull trend gets back on track technically”.
USD/CAD key levels
The pair is now advancing 1.33% at 1.2561 and a surpass of 1.2600 (psychological level) would aim for 1.2643 (high Feb.3) and then 1.2700 (psychological level). On the flip side, the initial support lines up at 1.2353 (low Feb.3) ahead of 1.2314 (low Jan.22) and finally 1.2286 (23.6% of 1.0620-1.2800).