After climbing near 1.3160, or session highs, USD/CAD
has now returned to the 1.3120 area following the US
releases.
USD/CAD trims gains on US results
Spot
has surrendered part of the earlier gains after US Factory Orders have surprised
investors to the downside during September, contracting 1.0% MoM vs. 0.9%
initially estimated although improving from the previous 2.1%
drop.
Further results showed the Economic Optimism index tracked by
IBD/TIPP coming in at 45.5 vs. 47.5 expected and 47.3 previous.
The
selling interest remains around CAD in spite of the rally in crude oil prices,
pushing the barrel of WTI above the $47.00 mark, or more than
2%.
USD/CAD levels to consider
As of writing, the
pair is advancing 0.22% at 1.3128 with the next resistance at 1.3171 (55-day
sma) followed by 1.3217 (38.2% Fibo of 1.3459-1.2827) and then 1.3241 (downtrend
from 1.3458). On the other hand, a break below 1.3069 (61.8% Fibo of
1.3459-1.2827) would open the door to 1.3040 (100-day sma) and finally 1.2966
(5-month uptrend).
