8 May 2014
USD/CAD bounces off 1.0870
FXStreet (Edinburgh) - The greenback is now gathering pace against its neighbour on Thursday, extending the USD/CAD rebound from session lows in sub-1.0870 levels.
USD/CAD consolidates below 1.0900
The pair continues to stabilize below the 1.0900 key handle, keeping the lower end of the weekly range after Tuesday’s deep pullback. In the data front, US Initial Claims dropped to 319K in the week ended on May 2 and Canadian Housing Starts rose to 194.8K on an annual basis in March, exceeding estimates. “The first relevant retracement level stands at 1.0958 and, from there, a more assertive climb would require breaching 1.1019 — the next retracement level, which coincides with the 40-day MA”, said Shaun Osborne, Chief FX Strategist at TD Securities.
USD/CAD levels to watch
As of writing the pair is down 0.10% at 1.0891 with the next support at 1.0874 (low May 6) ahead of 1.0860 (38.2% of 1.0182-1.1279) and then 1.0858 (low Apr.9). On the upside, a break above 1.0961 (high May 6) would open the door to 1.0980 (21-d MA) and finally 1.1007 (high May 2).
USD/CAD consolidates below 1.0900
The pair continues to stabilize below the 1.0900 key handle, keeping the lower end of the weekly range after Tuesday’s deep pullback. In the data front, US Initial Claims dropped to 319K in the week ended on May 2 and Canadian Housing Starts rose to 194.8K on an annual basis in March, exceeding estimates. “The first relevant retracement level stands at 1.0958 and, from there, a more assertive climb would require breaching 1.1019 — the next retracement level, which coincides with the 40-day MA”, said Shaun Osborne, Chief FX Strategist at TD Securities.
USD/CAD levels to watch
As of writing the pair is down 0.10% at 1.0891 with the next support at 1.0874 (low May 6) ahead of 1.0860 (38.2% of 1.0182-1.1279) and then 1.0858 (low Apr.9). On the upside, a break above 1.0961 (high May 6) would open the door to 1.0980 (21-d MA) and finally 1.1007 (high May 2).