20 Jan 2015
USD/CAD improves towards 1.2000
FXStreet (Edinburgh) - The greenback is quickly picking up pace on Tuesday, pushing USD/CAD towards the vicinity of the critical 1.2000 barrier.
USD/CAD eyes on US docket
The pair is re-gaining momentum vs. its Canadian counterpart in the first half of the week, looking to retake the 1.2000 handle and beyond. As the USD-strength gathers steam, the next data releases will be Canadian Manufacturing Sales (-0.6% MoM exp. Nov.) followed by the Housing Market index gauged by NAHB (58 exp. Jan), all preceding the more relevant BoC monetary policy meeting due tomorrow.
In the view of Shaun Osborne, Chief FX Strategist at TD Securities, “Intraday charts are neutral but the longer-term charts are bullish and point to a test of 1.22 shortly (76.4% Fibonacci retracement of the 1.30/0.94 drop).
USD/CAD levels to consider
At the moment the pair is up 0.44% at 1.2000 with the next hurdle at 1.2047 (2015 high Jan.16) followed by 1.2070 (low Apr.24 2009) and then 1.2100 (psychological level). On the downside, a break below 1.1940 (low Jan.20) would aim for 1.1934 (low Jan.19) and finally 1.1922 (Tenkan Sen).
USD/CAD eyes on US docket
The pair is re-gaining momentum vs. its Canadian counterpart in the first half of the week, looking to retake the 1.2000 handle and beyond. As the USD-strength gathers steam, the next data releases will be Canadian Manufacturing Sales (-0.6% MoM exp. Nov.) followed by the Housing Market index gauged by NAHB (58 exp. Jan), all preceding the more relevant BoC monetary policy meeting due tomorrow.
In the view of Shaun Osborne, Chief FX Strategist at TD Securities, “Intraday charts are neutral but the longer-term charts are bullish and point to a test of 1.22 shortly (76.4% Fibonacci retracement of the 1.30/0.94 drop).
USD/CAD levels to consider
At the moment the pair is up 0.44% at 1.2000 with the next hurdle at 1.2047 (2015 high Jan.16) followed by 1.2070 (low Apr.24 2009) and then 1.2100 (psychological level). On the downside, a break below 1.1940 (low Jan.20) would aim for 1.1934 (low Jan.19) and finally 1.1922 (Tenkan Sen).