26 Nov 2013
USD/CAD rejected from 1.0560
FXstreet.com (Edinburgh) - The USD is now losing some ground, dragging the USD/CAD to the area of 1.0540 after hitting session highs near 1.0560 on Tuesday.
USD/CAD lower after US data, risk appetite
Poor results from the US Consumer Confidence, with the gauge dipping beyond estimates to 70.4 vs. 72.9 for the month of November, collaborated with the current decline, which seems to have found support near 1.0540. The persistence of a risk-on context would be adding to the correction lower as well. According to Sebastien Galy, Strategist at Societe Generale, “The uptrend started in Jan 2013 and is helped by a more dovish BoC (low productivity vs US, risk of a housing correction linked to high debt levels) and probably more importantly a stronger USD. Since the last BoC meeting, the bearish CAD theme has hit a global audience most probably explaining the resilience of USD/CAD to the downside”.
USD/CAD levels to watch
The pair is now down 0.07% at 1.0542 with the next support at 1.0520 (low Nov.25) followed by 1.0513 (low Nov.22) and then 1.0485 (high Nov.19). On the flip side, a breakout of 1.0558 (high Nov.26) would open the door to 1.0584 (high Nov.25) and finally 1.0586 (high Jul.8).
USD/CAD lower after US data, risk appetite
Poor results from the US Consumer Confidence, with the gauge dipping beyond estimates to 70.4 vs. 72.9 for the month of November, collaborated with the current decline, which seems to have found support near 1.0540. The persistence of a risk-on context would be adding to the correction lower as well. According to Sebastien Galy, Strategist at Societe Generale, “The uptrend started in Jan 2013 and is helped by a more dovish BoC (low productivity vs US, risk of a housing correction linked to high debt levels) and probably more importantly a stronger USD. Since the last BoC meeting, the bearish CAD theme has hit a global audience most probably explaining the resilience of USD/CAD to the downside”.
USD/CAD levels to watch
The pair is now down 0.07% at 1.0542 with the next support at 1.0520 (low Nov.25) followed by 1.0513 (low Nov.22) and then 1.0485 (high Nov.19). On the flip side, a breakout of 1.0558 (high Nov.26) would open the door to 1.0584 (high Nov.25) and finally 1.0586 (high Jul.8).