11 Dec 2013
USD/CAD breaches 1.0600
FXstreet.com (Edinburgh) - The offered tone continues to weigh on the greenback, now dragging the USD/CAD to fresh 2-week lows in sub-1.0600 levels.
USD/CAD follows the weaker USD
The generalized selling pressure around the USD would be behind the current pullback, giving ground after fresh multi-year highs beyond the 1.0700 handle last week. According to Stephen Gallo, FX Strategist at BMO, “Generally speaking we detect a degree of ‘exhaustion’ as it pertains to the ‘short’ trades within the commodity-dollar bloc, so we look for additional buying in USDCAD to be put off until the 1.0580-1.0600 range takes hold again”. The Canadian docket is pretty thin this week although Governor Poloz’s speech on Thursday would grab all the attention.
USD/CAD key levels
As of writing the pair is losing 0.04% at 1.0596 with the next support at 1.0571 (low Nov.28) followed by 1.0559 (low Nov.29) and then 1.0531 (low Nov.27). On the flip side, a breakout of 1.0646 (high Dec.10) would target 1.0670 (high Dec.9) and finally 1.0708 (2013 high Dec.4).
USD/CAD follows the weaker USD
The generalized selling pressure around the USD would be behind the current pullback, giving ground after fresh multi-year highs beyond the 1.0700 handle last week. According to Stephen Gallo, FX Strategist at BMO, “Generally speaking we detect a degree of ‘exhaustion’ as it pertains to the ‘short’ trades within the commodity-dollar bloc, so we look for additional buying in USDCAD to be put off until the 1.0580-1.0600 range takes hold again”. The Canadian docket is pretty thin this week although Governor Poloz’s speech on Thursday would grab all the attention.
USD/CAD key levels
As of writing the pair is losing 0.04% at 1.0596 with the next support at 1.0571 (low Nov.28) followed by 1.0559 (low Nov.29) and then 1.0531 (low Nov.27). On the flip side, a breakout of 1.0646 (high Dec.10) would target 1.0670 (high Dec.9) and finally 1.0708 (2013 high Dec.4).