4 Dec 2013
USD/CAD highest level since Oct 2011
FXstreet.com (London) - USD/CAD has climbed to extend its gains this week, reaching 1.0679 ahead of the BoC and an array of US key data releases.
USD/CAD is positioned at weekly highs, the highest level in fact since Oct 2011 while the BoC is expected to deliver a Dovish bias and preserve the same tone as introduced in their last meeting. Rates are expected to remain unchanged at 1.00%. Meanwhile, from the US, ADP employment improved 215K vs 184K and beating the consensus of 173k. Strategists at TD Securities said the ISM non-manufacturing should extend its recent strong performance in Nov, edging higher to 55.8 (mkt 55.0) from 55.4. They look for Oct new home sales to come in at 430K (mkt 429K), as the recently positive momentum in the housing sector is likely placed on hold, a consequence of the increase in mortgage rates during the summer. “Finally, we look for the Beige Book report to more closely reflect the Fed’s recent “glass half full tone””.
USD/CAD Levels
The 20 DMA is 1.0512, the 50 DMA is 1.0424 and the 200 DMA is 1.0331. RSI (14) reads 54.69. Supports are ascending from 1.0516, 1.0559, 1.0590 and 1.0631. Spot is 1.0660 with resistances at 1.0673, 1.0721, 1.0745 and 1.0781..
USD/CAD is positioned at weekly highs, the highest level in fact since Oct 2011 while the BoC is expected to deliver a Dovish bias and preserve the same tone as introduced in their last meeting. Rates are expected to remain unchanged at 1.00%. Meanwhile, from the US, ADP employment improved 215K vs 184K and beating the consensus of 173k. Strategists at TD Securities said the ISM non-manufacturing should extend its recent strong performance in Nov, edging higher to 55.8 (mkt 55.0) from 55.4. They look for Oct new home sales to come in at 430K (mkt 429K), as the recently positive momentum in the housing sector is likely placed on hold, a consequence of the increase in mortgage rates during the summer. “Finally, we look for the Beige Book report to more closely reflect the Fed’s recent “glass half full tone””.
USD/CAD Levels
The 20 DMA is 1.0512, the 50 DMA is 1.0424 and the 200 DMA is 1.0331. RSI (14) reads 54.69. Supports are ascending from 1.0516, 1.0559, 1.0590 and 1.0631. Spot is 1.0660 with resistances at 1.0673, 1.0721, 1.0745 and 1.0781..