USD/CAD finds support around 1.2420

FXStreet (Edinburgh) - The US dollar is losing the grip vs. its Canadian counterpart on Friday, pushing USD/CAD to visit session lows around 1.2430/20.

USD/CAD focus on US, CAD data, oil

The pair is eroding yesterday’s gains to weekly highs around 1.2550, trading on the back footing following the bid tone in the commodity-bloc vs. the greenback. Ahead in the session, US manufacturing PMI by Markit (53.6 exp.) and Canadian Retail Sales during December (-0.4% exp.) area due.

In the meantime, crude oil prices are slightly up around the $52.00 mark, following the recent report by the EIA and waiting for today’s figures from driller Baker & Hughes.

USD/CAD levels to watch

At the moment the pair is down 0.24% at 1.2442. The initial support aligns at 1.2422 (low Feb.20) followed by 1.2360 (low Feb.17) and finally 1.2353 (low Feb.3). On the upside, the initial hurdle is placed at 1.2504 (21-d MA) ahead of 1.2537 (high Feb.13) and then 1.2556 (high Feb.19).

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USD/CAD should firm modestly in range – TDS

Shaun Osborne, Chief FX Strategist at TD Securities, explains that with there is a mild undervaluation in USD/CAD when compared to the fair value, and as such a move higher might be seen in the short-term particularly on a break above 1.2475/80.
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