25 Mar 2014
USD/CAD following trendline lower
FXStreet (Barcelona) - Currently, USD/CAD is trading at 1.1182, down -0.06% on the day, having posted a daily high at 1.1212 and low at 1.1171.
USD/CAD pushes lower into US Session
Despite a slight range higher overnight and through Europe, USD/CAD has declined into the US session, upon touching the downtrend line present from the 2014 1.1279 high on March 20th. There is no Canadian data today, but tomorrow sees US Durable Goods which will be a point of focus.
Stephen Gallo, European Head of Currency Strategy at BMO Capital Markets expects the recent range to tighten up heading into tomorrow, especially in light of further short CAD covering seen yesterday. He writes, “Key valuation metrics do not indicate that the pair is overly stretched to the topside at this stage (spot ref: 1.1205), and decent support and resistance levels are clustered on either side of spot (1.113-1.120 and 1.1275-1.130 respectively). Key interest rate differentials are still supportive of USDCAD, but there is a risk that further tepid US data this week knocks those spreads and the USD a bit further back towards their pre-FOMC levels.”
USD/CAD technicals
The hourly FXStreet OB/OS Index is showing neutral conditions, alongside the FXStreet Trend Index which is slightly bearish. At the time of writing, RSI is neutral at 41.50, up from 32.75 at the last hour close, while ADX is ranging at 26.09, up from 19.38 previous. Meanwhile, daily RSI is in neutral territory at 58.58.
On the hourly USD/CAD chart, the 200 SMA is climbing and currently at 1.1212, up from the previous hour close at 1.1152. On average, the exponential closing price for the past 20 days is 1.1126, with the trend indicating a continuation higher ahead. 2-Standard Deviation Volatility Bandwidth is presently at 25 pips and shrinking on the hourly USD/CAD chart, while the ATR (14) is currently at 10 pips. 2-Standard Deviation Volatility Bandwidth is at 255 pips and expanding on a daily chart.
USD/CAD levels
Spot is presently trading at 1.1184, and next resistance can be seen at 1.1191 (Daily Open), 1.1208 (Daily Classic PP), 1.1212 (Daily High), 1.1232 (Daily Classic R1) and 1.1244 (Monthly High). Support below can be found at 1.1183 (Yesterday's Low), 1.1175 (Weekly Classic PP), 1.1171 (Daily Low), 1.1167 (Daily Classic S1), and 1.1143 (Daily Classic S2).
USD/CAD pushes lower into US Session
Despite a slight range higher overnight and through Europe, USD/CAD has declined into the US session, upon touching the downtrend line present from the 2014 1.1279 high on March 20th. There is no Canadian data today, but tomorrow sees US Durable Goods which will be a point of focus.
Stephen Gallo, European Head of Currency Strategy at BMO Capital Markets expects the recent range to tighten up heading into tomorrow, especially in light of further short CAD covering seen yesterday. He writes, “Key valuation metrics do not indicate that the pair is overly stretched to the topside at this stage (spot ref: 1.1205), and decent support and resistance levels are clustered on either side of spot (1.113-1.120 and 1.1275-1.130 respectively). Key interest rate differentials are still supportive of USDCAD, but there is a risk that further tepid US data this week knocks those spreads and the USD a bit further back towards their pre-FOMC levels.”
USD/CAD technicals
The hourly FXStreet OB/OS Index is showing neutral conditions, alongside the FXStreet Trend Index which is slightly bearish. At the time of writing, RSI is neutral at 41.50, up from 32.75 at the last hour close, while ADX is ranging at 26.09, up from 19.38 previous. Meanwhile, daily RSI is in neutral territory at 58.58.
On the hourly USD/CAD chart, the 200 SMA is climbing and currently at 1.1212, up from the previous hour close at 1.1152. On average, the exponential closing price for the past 20 days is 1.1126, with the trend indicating a continuation higher ahead. 2-Standard Deviation Volatility Bandwidth is presently at 25 pips and shrinking on the hourly USD/CAD chart, while the ATR (14) is currently at 10 pips. 2-Standard Deviation Volatility Bandwidth is at 255 pips and expanding on a daily chart.
USD/CAD levels
Spot is presently trading at 1.1184, and next resistance can be seen at 1.1191 (Daily Open), 1.1208 (Daily Classic PP), 1.1212 (Daily High), 1.1232 (Daily Classic R1) and 1.1244 (Monthly High). Support below can be found at 1.1183 (Yesterday's Low), 1.1175 (Weekly Classic PP), 1.1171 (Daily Low), 1.1167 (Daily Classic S1), and 1.1143 (Daily Classic S2).