23 Aug 2013
USD/CAD is sitting well above the area of 1.0500, ahead of Canadian CPI
FXstreet.com (Athens) -The USD/CAD is sitting on the fence ahead of Canadian CPI, US new home sales and Jackson’s Hole Symposium.
Will Canadian CPI and US new home sales influence the uptrend of the pair?
After a wobble earlier in the year the new home sales data is seen continuing the improving trend, currently at levels seen 5 years ago but still some 65% below the peak seen at the height of the pre-crisis boom, a level that may never be achieved again. Data needs to be notably firmer than expected to impact the American dollar, especially given strong focus on new homes sales data coming later on, as well as on tomorrow’s Jackson Hole conference. Traders might find it plausible, that better than expected data from the inflation in Canada, would boost the ‘loonie’ and vice-versa.
Technical perspective on USD/CAD
At the time of writing, the pair is trading at 1.0556, up 0.38% near its daily high of 1.0570. The FXstreet.com Trend Index shows the pair to be slightly bullish. Dmytro Bondar, analyst in RBS suggest that ‘in the long term, 1.065 is a key-resistance area, to open 1.1000 as well as 1.1400 targets’. Daily pivot point support can be found at 1.0500, 1.0476, 1.0432 and resistance at 1.0580, 1.0610 and 1.0630, respectively.
Will Canadian CPI and US new home sales influence the uptrend of the pair?
After a wobble earlier in the year the new home sales data is seen continuing the improving trend, currently at levels seen 5 years ago but still some 65% below the peak seen at the height of the pre-crisis boom, a level that may never be achieved again. Data needs to be notably firmer than expected to impact the American dollar, especially given strong focus on new homes sales data coming later on, as well as on tomorrow’s Jackson Hole conference. Traders might find it plausible, that better than expected data from the inflation in Canada, would boost the ‘loonie’ and vice-versa.
Technical perspective on USD/CAD
At the time of writing, the pair is trading at 1.0556, up 0.38% near its daily high of 1.0570. The FXstreet.com Trend Index shows the pair to be slightly bullish. Dmytro Bondar, analyst in RBS suggest that ‘in the long term, 1.065 is a key-resistance area, to open 1.1000 as well as 1.1400 targets’. Daily pivot point support can be found at 1.0500, 1.0476, 1.0432 and resistance at 1.0580, 1.0610 and 1.0630, respectively.