16 Jan 2015
USD/CAD off highs, still above 1.20
FXStreet (Edinburgh) - After reaching fresh multi-year tops near 1.2050, USD/CAD has now deflated to the 1.2020 area, following the US data releases.
USD/CAD remains buoyant
Stumbling oil prices continue to be a drag on the Canadian dollar amidst the relentless appreciation of the greenback. On the back of those drivers, spot managed to clear its way to the mid-1.2000s today, area last visited in April 2009. In the data universe, Industrial Production and Capacity Utilization in the US missed expectations while consumer prices tracked by the CPI printed the biggest decline since 2009.
Camilla Sutton, Chief FX Strategist at Scotiabank, suggested “all signals are back in buy territory; if USDCAD can sustain itself above 1.20 it opens up further upside risks with resistance at the psychological levels of 1.21, 1.22”.
USD/CAD relevant levels
At the moment the pair is up 0.50% at 1.2025 facing the next resistance at 1.2070 (low Apr.24 2009) and then 1.2100 (psychological level). On the downside, a breach of 1.1873 (Tenkan Sen) would open the door to 1.1836 (low Jan.9) and finally 1.1803 (low Jan.15).
USD/CAD remains buoyant
Stumbling oil prices continue to be a drag on the Canadian dollar amidst the relentless appreciation of the greenback. On the back of those drivers, spot managed to clear its way to the mid-1.2000s today, area last visited in April 2009. In the data universe, Industrial Production and Capacity Utilization in the US missed expectations while consumer prices tracked by the CPI printed the biggest decline since 2009.
Camilla Sutton, Chief FX Strategist at Scotiabank, suggested “all signals are back in buy territory; if USDCAD can sustain itself above 1.20 it opens up further upside risks with resistance at the psychological levels of 1.21, 1.22”.
USD/CAD relevant levels
At the moment the pair is up 0.50% at 1.2025 facing the next resistance at 1.2070 (low Apr.24 2009) and then 1.2100 (psychological level). On the downside, a breach of 1.1873 (Tenkan Sen) would open the door to 1.1836 (low Jan.9) and finally 1.1803 (low Jan.15).