1 Dec 2014
USD/CAD drops further to 1.1370
FXStreet (Edinburgh) - The US dollar is extending its downbeat momentum on Monday, sending USD/CAD to visit fresh lows in the 1.1370/65 area.
USD/CAD muted on data
The pair posted no reaction after the Canadian manufacturing PMI tracked by RBC came in at 55.3 for the month of November, matching the previous print; the US manufacturing PMI tracked by Markit dropped to 54.8 for the month of December vs. November’s 55.9. Next of note will be the ISM manufacturing, expected at 58.0. “Today, support should hold on the 1.1390/1.1400 area, with a risk of a move lower if crude oil prices manage to improve further or the balance of US / Canadian PMIs favors the CAD amidst broader USD weakness. In that case, we doubt support around 1.1340 would be broken”, observed Shaun Osborne, Chief FX Strategist at TD Securities.
USD/CAD relevant levels
As of writing the pair is now losing 0.58% at 1.1371 with the next support at 1.1325 (low Nov.28) followed by 1.1300 (psychological level) and then 1.1280 (Tenkan Sen). On the upside, a breakout of 1.1459 (high Dec.1) would open the door to 1.1466 (2014 high Nov.5) and then 1.1500 (psychological level).
USD/CAD muted on data
The pair posted no reaction after the Canadian manufacturing PMI tracked by RBC came in at 55.3 for the month of November, matching the previous print; the US manufacturing PMI tracked by Markit dropped to 54.8 for the month of December vs. November’s 55.9. Next of note will be the ISM manufacturing, expected at 58.0. “Today, support should hold on the 1.1390/1.1400 area, with a risk of a move lower if crude oil prices manage to improve further or the balance of US / Canadian PMIs favors the CAD amidst broader USD weakness. In that case, we doubt support around 1.1340 would be broken”, observed Shaun Osborne, Chief FX Strategist at TD Securities.
USD/CAD relevant levels
As of writing the pair is now losing 0.58% at 1.1371 with the next support at 1.1325 (low Nov.28) followed by 1.1300 (psychological level) and then 1.1280 (Tenkan Sen). On the upside, a breakout of 1.1459 (high Dec.1) would open the door to 1.1466 (2014 high Nov.5) and then 1.1500 (psychological level).