3 Feb 2015
USD/CAD recovers ground, eyes on 1.2600
FXStreet (Edinburgh) - The US dollar remains on track to extend its rebound from lows around 1.2530 on Tuesday, now lifting USD/CAD back around 1.2580/85.
USD/CAD eyes on US data
The pair is retreating for the second consecutive session so far after hitting multi-year highs in the 1.2800 neighbourhood last week. Despite the broader bearish tone around the Canadian dollar, the recent pick up in the crude oil prices is supporting the currency and intensifying the corrective downside. Second-tier data in Canada today from Industrial Product Price will leave the attention to the more relevant US Factory Orders, expected to have contracted 2.2% MoM during December.
According to Shaun Osborne, Chief FX Strategist at TD Securities, “We still think the underlying trend higher is intact so we will look for opportunities to get long”.
USD/CAD relevant levels
The pair is now losing 0.01% at 1.2574 with the immediate support lying at 1.2512 (low Jan.29) ahead of 1.2501 (10-d MA) and finally 1.2390 (low Jan.28). On the other hand, a break above 1.2600 (psychological level) would target 1.2645 (hourly high Feb.3) en route to 1.2772 (high Feb.2).
USD/CAD eyes on US data
The pair is retreating for the second consecutive session so far after hitting multi-year highs in the 1.2800 neighbourhood last week. Despite the broader bearish tone around the Canadian dollar, the recent pick up in the crude oil prices is supporting the currency and intensifying the corrective downside. Second-tier data in Canada today from Industrial Product Price will leave the attention to the more relevant US Factory Orders, expected to have contracted 2.2% MoM during December.
According to Shaun Osborne, Chief FX Strategist at TD Securities, “We still think the underlying trend higher is intact so we will look for opportunities to get long”.
USD/CAD relevant levels
The pair is now losing 0.01% at 1.2574 with the immediate support lying at 1.2512 (low Jan.29) ahead of 1.2501 (10-d MA) and finally 1.2390 (low Jan.28). On the other hand, a break above 1.2600 (psychological level) would target 1.2645 (hourly high Feb.3) en route to 1.2772 (high Feb.2).