18 Jul 2014
USD/CAD drops to 1.0710 post-CPI
FXStreet (Edinburgh) - The Canadian dollar is now accelerating its appreciation against the US dollar pushing the USD/CAD to session lows around 1.0710.
USD/CAD softer after CPI data
The bid tone around the CAD is now intensifying after consumer prices in the Canadian economy rose more than expectations 2.3% on a year to June and 0.1% on a monthly basis. Core prices tracked by the BoC also surprised to the upside rising at an annual pace of 1.8%. Eric Theoret, Currency Strategist at Scotiabank, observes the technicals for the pair area bullish in the short term, adding, “both momentum and trend indicators are broadly suggestive of upside risk, and we look to the 50 day MA (1.0804) as the next key level of resistance given its role challenging USDCAD rallies since April”.
USD/CAD levels to consider
At the moment the pair is down 0.30% at 1.0728 with the immediate support at 1.0710 (low Jul.14) followed by 1.0630 (low Jul.11) and then 1.0620 (low Jul.3). On the flip side, a breakout of 1.0795 (high Jul.16) would expose 1.0814 (low (May 8) and finally 1.0817 (200-d MA).
USD/CAD softer after CPI data
The bid tone around the CAD is now intensifying after consumer prices in the Canadian economy rose more than expectations 2.3% on a year to June and 0.1% on a monthly basis. Core prices tracked by the BoC also surprised to the upside rising at an annual pace of 1.8%. Eric Theoret, Currency Strategist at Scotiabank, observes the technicals for the pair area bullish in the short term, adding, “both momentum and trend indicators are broadly suggestive of upside risk, and we look to the 50 day MA (1.0804) as the next key level of resistance given its role challenging USDCAD rallies since April”.
USD/CAD levels to consider
At the moment the pair is down 0.30% at 1.0728 with the immediate support at 1.0710 (low Jul.14) followed by 1.0630 (low Jul.11) and then 1.0620 (low Jul.3). On the flip side, a breakout of 1.0795 (high Jul.16) would expose 1.0814 (low (May 8) and finally 1.0817 (200-d MA).