USD/CAD retreats from highs, slips back to 1.3450

The upside momentum in USD/CAD seems to have run out of vigour in the boundaries of 1.3500 today, quickly retreating to the mid-1.3400s soon afterwards.

USD/CAD weaker post-data, looks to EIA

Spot has faded part of the spike to daily highs in the 1.3500 neighbourhood after US releases have come in below expectations today.

In fact, Industrial Production, Manufacturing Production and Capacity Utilization have all missed initial forecasts for the month of October, while the NAHB index has matched consensus at 63 for the current month.

In Canada, Manufacturing Shipments have expanded at a monthly 0.3% in September, bettering expectations and somewhat lending some support to CAD.

Crude oil prices have cut part of their earlier losses, although they still remain in the negative territory ahead of the EIA’s weekly report on crude oil inventories due later.

USD/CAD significant levels

As of writing the pair is up 0.10% at 1.3461 and a break above 1.3575 (50% Fibo of the 2016 drop) would expose 1.3590 (high Nov.14) and finally 1.3839 (61.8% Fibo of the 2016 drop). On the other hand, the immediate support lines up at 1.3395 (20-day sma) followed by 1.3311 (38.2% Fibo of the 2016 drop) and then 1.3260 (low Nov.9).

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