26 Jan 2015
USD/CAD remains in highs near 1.2470
FXStreet (Edinburgh) - The Canadian dollar remains on the back footing vs. its southern neighbor, with USD/CAD hovering over the upper end of the range around 1.2470.
USD/CAD in multi-year highs
The pair remains unstoppable in January, advancing for the fifth consecutive month to levels close to 1.2500 the figure AND backed by the USD momentum and the bearishness surrounding the CAD. Recall that the BoC unexpectedly lowered its refi rate to 0.75% in its meeting last week, in response to the slump in crude oil prices and the prospects of increasing disinflationary pressures.
“Near-term, we still think there is a risk of a correction to fill the 1.2145/1.2245 gap on the short-term chart but we also expect solid support to emerge on dips to the mid 1.21 area”, commented Shaun Osborne, Chief FX Strategist at TD Securities.
USD/CAD levels to consider
At the moment the pair is advancing 0.37% at 1.2470 with the next hurdle at 1.2500 (psychological level) ahead of 1.2507 (high Apr.21 2009) and then 1.2600 (psychological level). On the flip side, a breakdown of 1.2360 (low Jan.23) would open the door to 1.2315 (low Jan.22) and finally 1.2200 (psychological level).
USD/CAD in multi-year highs
The pair remains unstoppable in January, advancing for the fifth consecutive month to levels close to 1.2500 the figure AND backed by the USD momentum and the bearishness surrounding the CAD. Recall that the BoC unexpectedly lowered its refi rate to 0.75% in its meeting last week, in response to the slump in crude oil prices and the prospects of increasing disinflationary pressures.
“Near-term, we still think there is a risk of a correction to fill the 1.2145/1.2245 gap on the short-term chart but we also expect solid support to emerge on dips to the mid 1.21 area”, commented Shaun Osborne, Chief FX Strategist at TD Securities.
USD/CAD levels to consider
At the moment the pair is advancing 0.37% at 1.2470 with the next hurdle at 1.2500 (psychological level) ahead of 1.2507 (high Apr.21 2009) and then 1.2600 (psychological level). On the flip side, a breakdown of 1.2360 (low Jan.23) would open the door to 1.2315 (low Jan.22) and finally 1.2200 (psychological level).