8 Jul 2013
USD/CAD bounces to 1.0580
FXstreet.com (Barcelona) - Sudden buying interest in the USD has lifted the USD/CAD to the area of 1.0580 on Monday, recovering ground after dipping to sub 1.0550 levels.
USD/CAD dragged lower by data
Better-than-expected Building Permits in the Canadian economy during May have boosted the CAD earlier, dragging the pair to session lows below 1.0550. According to G.Moore and S.Osborne, FX Strategists at TD Securities, “The USD also looks to be struggling somewhat on the daily chart. The market is pressing right up against daily trend channel resistance in and daily slow stochastic oscillator signals are also flashing overbought… But the risk of a correction looms quite large over this market now. We think near-term corrective USD losses should be limited but weakness below 1.0421—key support now—will trigger a deeper pull back”.
USD/CAD key levels
At the moment the pair is down 0.05% at 1.0579 with the immediate support at 1.0518 (MA10d) followed by 1.0512 (low Jul.5) and finally 1.0472 (low Jul.4). On the upside, a break above 1.0586 (high Jul.8) would target 1.0600 (psychological level) en route to 1.0609 (2013 high Jul.5).
USD/CAD dragged lower by data
Better-than-expected Building Permits in the Canadian economy during May have boosted the CAD earlier, dragging the pair to session lows below 1.0550. According to G.Moore and S.Osborne, FX Strategists at TD Securities, “The USD also looks to be struggling somewhat on the daily chart. The market is pressing right up against daily trend channel resistance in and daily slow stochastic oscillator signals are also flashing overbought… But the risk of a correction looms quite large over this market now. We think near-term corrective USD losses should be limited but weakness below 1.0421—key support now—will trigger a deeper pull back”.
USD/CAD key levels
At the moment the pair is down 0.05% at 1.0579 with the immediate support at 1.0518 (MA10d) followed by 1.0512 (low Jul.5) and finally 1.0472 (low Jul.4). On the upside, a break above 1.0586 (high Jul.8) would target 1.0600 (psychological level) en route to 1.0609 (2013 high Jul.5).