9 Jul 2014
USD/CAD hits daily lows after data, limited moves
FXStreet (Córdoba) - The USD/CAD slid to fresh daily lows as the loonie strengthened somewhat following the release of better-than-expected Canadian housing data.
Canada's housing starts increased by 198.2K in June, following a 197.0K rise in May, beating expectations of 189.0K. The USD/CAD dropped to a low of 1.0660 before finding support. Moves remain constrained as investors’ focus remains on the FOMC minutes that will be published at 18:00 GMT, with the USD/CAD having traded in a 25-pip range around yesterday’s close.
“The hourly chart suggests the market is waiting for Friday's employment report at relative ease, as the move higher triggered by last week's strong US employment data has lost momentum, but without showing signals of a looming retracement either”, said the TD Securities team.
USD/CAD levels to watch
At time of writing, the USD/CAD is trading at 1.0665, recording a 0.10% loss on the day. In terms of technical levels, the pair could find next supports at 1.0619 (Jul 3 low), 1.0600 (psychological level), 1.0588 (2014 low Jan 2). On the other hand, resistances are seen at 1.0693/1.0700 (Jul 8 high/psychological level), 1.0759 (Jun 23 high) and 1.0800 (200-day SMA/psychological level).
Canada's housing starts increased by 198.2K in June, following a 197.0K rise in May, beating expectations of 189.0K. The USD/CAD dropped to a low of 1.0660 before finding support. Moves remain constrained as investors’ focus remains on the FOMC minutes that will be published at 18:00 GMT, with the USD/CAD having traded in a 25-pip range around yesterday’s close.
“The hourly chart suggests the market is waiting for Friday's employment report at relative ease, as the move higher triggered by last week's strong US employment data has lost momentum, but without showing signals of a looming retracement either”, said the TD Securities team.
USD/CAD levels to watch
At time of writing, the USD/CAD is trading at 1.0665, recording a 0.10% loss on the day. In terms of technical levels, the pair could find next supports at 1.0619 (Jul 3 low), 1.0600 (psychological level), 1.0588 (2014 low Jan 2). On the other hand, resistances are seen at 1.0693/1.0700 (Jul 8 high/psychological level), 1.0759 (Jun 23 high) and 1.0800 (200-day SMA/psychological level).