4 Mar 2014
USD/CAD jumps above 1.1100
FXStreet (Edinburgh) - The greenback is now picking up pace against its fellow neighbour, lifting the USD/CAD to test weekly highs around 1.1110.
USD/CAD boosted by risk aversion
A sudden bout of risk aversion is accelerating the demand for the greenback on Tuesday, although the bull attempt struggled to convincingly follow through the 1.1100/10 band so far. In the opinion of Shaun Osborne, Chief FX Strategist at TD Securities, “Price action looks a little weak on the daily candles but the USD retains a consolidative bias overall… We spot firm support in the low 1.10s (40-day MA at 1.1034, consolidation base just above) The salient features of the daily and weekly charts are the big, bullish reversals which formed in February at 1.0900/10 which is now major support”. The next big event for the pair would be tomorrow’s BoC monetary policy meeting ahead of Friday’s US Payrolls.
USD/CAD levels to consider
As of writing the pair is up 0.23% at 1.1110 and a surpass of 1.1148 (high Feb.28) would allow 1.1160 (high Feb.27). On the downside, the initial barrier lines up at 1.1038 (low Mar.3) ahead of 1.1000 (psychological level) and then 1.0962 (daily cloud top).
USD/CAD boosted by risk aversion
A sudden bout of risk aversion is accelerating the demand for the greenback on Tuesday, although the bull attempt struggled to convincingly follow through the 1.1100/10 band so far. In the opinion of Shaun Osborne, Chief FX Strategist at TD Securities, “Price action looks a little weak on the daily candles but the USD retains a consolidative bias overall… We spot firm support in the low 1.10s (40-day MA at 1.1034, consolidation base just above) The salient features of the daily and weekly charts are the big, bullish reversals which formed in February at 1.0900/10 which is now major support”. The next big event for the pair would be tomorrow’s BoC monetary policy meeting ahead of Friday’s US Payrolls.
USD/CAD levels to consider
As of writing the pair is up 0.23% at 1.1110 and a surpass of 1.1148 (high Feb.28) would allow 1.1160 (high Feb.27). On the downside, the initial barrier lines up at 1.1038 (low Mar.3) ahead of 1.1000 (psychological level) and then 1.0962 (daily cloud top).