USD/CAD on a Tear Post Doha, Bulls Aim to Re-Take 1.30
USD/CAD
is on a tear this morning in Asia, last exchanging hands at 1.2985 day
highs, after Oil talks in Doha failed to reach an agreement to freeze
production levels.
USD/CAD threatens to re-take 1.30 as Doha talks fail
The
pair is just a whisker away from hitting the psychological 1.30 round
number, a level not visited since April 11th. Just as in the case of
Oil, the recovery in the Canadian Dollar vs its US counter-part has been
driven, partly, by hopes that a compromise will be reached among OPEC
and non-OPEC countries to freeze Oil production. Now that such an
outcome in the near term remains illusive at best, the Canadian Dollar
is likely to be under severe pressure this week.
USD/CAD technical levels
From
a technical perspective, the spike in Asia has taken the rate at the
doorstep of 1.30, a level that coincides with the Daily R3 area and that
should act as a sticky resistance to at least see some sort of initial
rejection/consolidation. Should/when the level breaks, 1.3020 is the
next horizontal resistance ahead of 1.3065, a confluent level from April
8th sell-off origin and the day's ATR 14. On the downside, expect
shallow retracements, with 1.2940/50 first focal point (broken Daily R2
reference) followed by 1.29 round number.
(Market News Provided by FXstreet)
