9 Oct 2013
USD/CAD on the upper lever as “loonie” lags other commodity currencie
FXstreet.com (Athens) – The USD/CAD is heading north since the kick off of the Asian trading session, mostly due to the fact that traders are very worried on the impacts of a potential US debt default on the strongly correlated with the US, Canadian economy.
USD/CAD upwards, as when the US sneezes the loonie catches the cold
The USD/CAD is heavily boosted today since the opening of the early Asian trading session and ahead of the very crucial FOMC release on the September meeting. Traders should take upon well consideration on a couple of reasons that might supported the cross upward trend. First of all, investors should bear in mind that the loonie is by far the most positively and heavily correlated currency with the US stock market; thus it is more than obvious that traders worry on the US fiscal deadlock in the US in Canadian economy. While today apart from the FOMC release we have no major calendar data releases we are ahead a very crucial week pertaining not only to the US fiscal budget impasse but also to the Canadian economy. Therefore, investors should carefully read the data that would release on Thursday regarding the Canadian economy (new house pricing index), as well as – if not mostly- the Friday release of the BoC business outlook in combination with the labor data.
Technical Aspects on USD/CAD
Our personal aspect of view, is that the decent break of the (38.2% Fib) has exposed the cross very close to the area as of 1.0395 (50% Fib). However, the pair needs to overcome the barrier as of the downward trend line at the level of 1.0414 in order to move in a bullish trend in the long-term. At the time of writing the pair is trading at 1.0377, up 0.08% not far away from its daily high as of 1.0388. The FXstreet.com Trend Index shows the pair to be bullish and in a overbought momentum in the 15- minutes timeframe. Daily pivot point support and resistance can be found at S3: 1.0336 S2: 1.0310 S1: 1.0284 R1:1.0395 R2:1.0417 R3:1.0459
USD/CAD upwards, as when the US sneezes the loonie catches the cold
The USD/CAD is heavily boosted today since the opening of the early Asian trading session and ahead of the very crucial FOMC release on the September meeting. Traders should take upon well consideration on a couple of reasons that might supported the cross upward trend. First of all, investors should bear in mind that the loonie is by far the most positively and heavily correlated currency with the US stock market; thus it is more than obvious that traders worry on the US fiscal deadlock in the US in Canadian economy. While today apart from the FOMC release we have no major calendar data releases we are ahead a very crucial week pertaining not only to the US fiscal budget impasse but also to the Canadian economy. Therefore, investors should carefully read the data that would release on Thursday regarding the Canadian economy (new house pricing index), as well as – if not mostly- the Friday release of the BoC business outlook in combination with the labor data.
Technical Aspects on USD/CAD
Our personal aspect of view, is that the decent break of the (38.2% Fib) has exposed the cross very close to the area as of 1.0395 (50% Fib). However, the pair needs to overcome the barrier as of the downward trend line at the level of 1.0414 in order to move in a bullish trend in the long-term. At the time of writing the pair is trading at 1.0377, up 0.08% not far away from its daily high as of 1.0388. The FXstreet.com Trend Index shows the pair to be bullish and in a overbought momentum in the 15- minutes timeframe. Daily pivot point support and resistance can be found at S3: 1.0336 S2: 1.0310 S1: 1.0284 R1:1.0395 R2:1.0417 R3:1.0459