After a drop to the 1.2680 area, the US dollar is now recovering the strength and pushingUSD/CAD back above the 1.2700 mark.
USD/CAD back from multi-year highs
Spot quickly clinched the 1.2800 handle following a poor GDP result in the Canadian docket, with the domestic economy unexpectedly contracting 0.2% during November vs. a flat forecast. Despite the US releases came in below expectations, the accelerated weakness around the CAD did the rest, pushing spot to levels last seen in March 2009 around 1.2800 the figure.
“Absent stronger signs of weakness and a turn lower in trend momentum oscillators, the USD will remain well supported on dips”, suggested strategists at TD Securities.
USD/CAD significant levels
At the moment the pair is advancing 0.88% at 1.2722 with the initial barrier at 1.2800 (2015 high Jan.30) and then 1.2900 and 1.3000(psychological levels). On the downside, a breach of 1.2608 (low Jan.30) would aim for 1.2512 (low Jan.29) and finally 1.2390 (low Jan.28).
USD/CAD back from multi-year highs
Spot quickly clinched the 1.2800 handle following a poor GDP result in the Canadian docket, with the domestic economy unexpectedly contracting 0.2% during November vs. a flat forecast. Despite the US releases came in below expectations, the accelerated weakness around the CAD did the rest, pushing spot to levels last seen in March 2009 around 1.2800 the figure.
“Absent stronger signs of weakness and a turn lower in trend momentum oscillators, the USD will remain well supported on dips”, suggested strategists at TD Securities.
USD/CAD significant levels
At the moment the pair is advancing 0.88% at 1.2722 with the initial barrier at 1.2800 (2015 high Jan.30) and then 1.2900 and 1.3000(psychological levels). On the downside, a breach of 1.2608 (low Jan.30) would aim for 1.2512 (low Jan.29) and finally 1.2390 (low Jan.28).
