USD/CAD on a Tear Post Doha, Bulls Aim to Re-Take 1.30

USD/CAD on a Tear Post Doha, Bulls Aim to Re-Take 1.30

18 April 2016, 05:02
Roberto Jacobs
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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)

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