24 Apr 2014
USD/CAD consolidates above 1.1000
FXStreet (Córdoba) - The USD/CAD is enjoying a consolidative session, trading within this week's range ahead of the next bunch of US data.
The USD/CAD has been confined to a 20-pip range Thursday following sharper swings the previous day in the wake of solid Canadian retail sales. However, from a wider view, the USD/CAD is in a sideways consolidation phase after bouncing off a multi-month low of 1.0875 scored early April. At time of writing, the USD/CAD is trading at 1.1025, just a few pips below its opening price.
During the New York session, the US will release durable goods orders and initial jobless claims figures.
USD/CAD technical outlook
"On the charts, USDCAD has traded a little heavily through the late morning European session and, after yesterday's stall right at the 40-day MA, the markets might start to think about testing the downside towards 1.0950/1.10 a little more", said the TD Securities team. "But downside risk is likely to remain limited this morning – option expiries in the high 1.10s remain a factor and the market will not want to get too short USDCAD ahead of the governor’s comments later today. We rather look for firm support in the low 1.10 zone now and expect a rebound back to the high 1.10s though the balance of the week".
The USD/CAD has been confined to a 20-pip range Thursday following sharper swings the previous day in the wake of solid Canadian retail sales. However, from a wider view, the USD/CAD is in a sideways consolidation phase after bouncing off a multi-month low of 1.0875 scored early April. At time of writing, the USD/CAD is trading at 1.1025, just a few pips below its opening price.
During the New York session, the US will release durable goods orders and initial jobless claims figures.
USD/CAD technical outlook
"On the charts, USDCAD has traded a little heavily through the late morning European session and, after yesterday's stall right at the 40-day MA, the markets might start to think about testing the downside towards 1.0950/1.10 a little more", said the TD Securities team. "But downside risk is likely to remain limited this morning – option expiries in the high 1.10s remain a factor and the market will not want to get too short USDCAD ahead of the governor’s comments later today. We rather look for firm support in the low 1.10 zone now and expect a rebound back to the high 1.10s though the balance of the week".