18 Nov 2013
USD/CAD capped by 1.0430
FXstreet.com (Edinburgh) - The softer tone around the greenback dragged the USD/CAD to test intraday lows in the 1.0415/10 area, although the pair managed to pick up pace and retake the 1.0430/35 region.
USD/CAD following a weaker dollar
The pair is losing ground for the fourth consecutive session today, as the USD is still suffering the dovish tone after Yellen’s appearance last week. In the data front, US Net Long-Term TIC flows rose to $25.5 billion in September while the Housing Market gauged by the NAHB index stayed put at 54 for the present month, missing the median at 55. In the opinion of strategists at TS Securities, “From a broader point of view, the set-back seen last week has not changed our perspective of USD/CAD’s near-to-medium term trend. We still think the underlying bias is higher and we view the 1.0420 area as important support on the daily chart (but would not rule out minor, intraday weakness to the high 1.03 area over the next few days—40-day MA at 1.0384 currently)”.
USD/CAD levels to watch
The pair is now trimming losses at 1.0432, or down 0.14%, with the immediate support at 1.0408 (MA30d) followed by 1.0406 (low Nov.7) and finally 1.0398 (low Nov.4). On the flip side, a breakout of 1.0442 (high Nov.18) would open the door to 1.0485 (high Nov.15) and 1.0526 (high Nov.14).
USD/CAD following a weaker dollar
The pair is losing ground for the fourth consecutive session today, as the USD is still suffering the dovish tone after Yellen’s appearance last week. In the data front, US Net Long-Term TIC flows rose to $25.5 billion in September while the Housing Market gauged by the NAHB index stayed put at 54 for the present month, missing the median at 55. In the opinion of strategists at TS Securities, “From a broader point of view, the set-back seen last week has not changed our perspective of USD/CAD’s near-to-medium term trend. We still think the underlying bias is higher and we view the 1.0420 area as important support on the daily chart (but would not rule out minor, intraday weakness to the high 1.03 area over the next few days—40-day MA at 1.0384 currently)”.
USD/CAD levels to watch
The pair is now trimming losses at 1.0432, or down 0.14%, with the immediate support at 1.0408 (MA30d) followed by 1.0406 (low Nov.7) and finally 1.0398 (low Nov.4). On the flip side, a breakout of 1.0442 (high Nov.18) would open the door to 1.0485 (high Nov.15) and 1.0526 (high Nov.14).