10 Jun 2013
USD/CAD continues to appease the bears
FXstreet.com (London) - USD/CAD continues to appease the bears, despite a broadly stronger dollar.
USD/CAD has continued its descending path with a drop in Asia to open in the European session at lower levels printing a low of 1.0181.
USD/CAD risk reward
However, else where across other majors, the US dollar has actually benefited from a better than expected NFP’s released on Friday.
Societe Generale research teams suggest that USD/CAD may take the form of other pairs in a stronger US dollar and explained “Chinese data over the weekend were disappointing. Soft domestic demand, weak trade, no inflationary pressure. Q2 will see GDP growth slow. Wei Lao's commentary is becoming very downbeat, verging on downright scary. That is simply bad news for commodity markets and commodity-related currencies. Add it to the rise in US yields and it makes me highly suspicious of any bounce in EM assets. Within G10FX, AUD/CAD has another 10% downside, and long USD/CAD looks a great risk-reward trade”
USD/CAD Levels and Calendar
With a light economic calendar for the pair, while USD/CAD is continuing to trade below pivot and towards Fridays low, 1.0166, the range extends to 1.0385 within an ascending channel targeting 1.0485. Support comes 1.0215 and 1.0200 on the downside targeting 1.0100. ICN.com technical analysis teams said that general trend over short term basis is to the upside with steady daily closing above levels 0.9800 targeting 1.0485.
USD/CAD has continued its descending path with a drop in Asia to open in the European session at lower levels printing a low of 1.0181.
USD/CAD risk reward
However, else where across other majors, the US dollar has actually benefited from a better than expected NFP’s released on Friday.
Societe Generale research teams suggest that USD/CAD may take the form of other pairs in a stronger US dollar and explained “Chinese data over the weekend were disappointing. Soft domestic demand, weak trade, no inflationary pressure. Q2 will see GDP growth slow. Wei Lao's commentary is becoming very downbeat, verging on downright scary. That is simply bad news for commodity markets and commodity-related currencies. Add it to the rise in US yields and it makes me highly suspicious of any bounce in EM assets. Within G10FX, AUD/CAD has another 10% downside, and long USD/CAD looks a great risk-reward trade”
USD/CAD Levels and Calendar
With a light economic calendar for the pair, while USD/CAD is continuing to trade below pivot and towards Fridays low, 1.0166, the range extends to 1.0385 within an ascending channel targeting 1.0485. Support comes 1.0215 and 1.0200 on the downside targeting 1.0100. ICN.com technical analysis teams said that general trend over short term basis is to the upside with steady daily closing above levels 0.9800 targeting 1.0485.