USD/CAD Keeps 1.2500… for Now

USD/CAD Keeps 1.2500… for Now

2 May 2016, 08:05
Roberto Jacobs

USD/CAD Keeps 1.2500… for Now

There is no respite for the greenback so far, with USD/CAD posting marginal losses albeit managing to trade above the 1.2500 handle early in Europe.

USD/CAD attention to US data, oil

Spot has bounced off recent multi-month lows just below the 1.2500 key support (Friday), although it remains unable to gather further traction amidst increasing selling pressure around the US dollar.

Today’s softer tone in crude oil prices has alleviated some CAD upside pressure, with the barrel of West Texas Intermediate off recent YTD highs above the $46.00 mark.

Ahead in the NA session, ISM Manufacturing and speeches by Lockhart and Williams will be the main highlights in the US docket, while RBC’s Manufacturing PMI is only due in Canada.

USD/CAD significant levels

As of writing the pair is losing 0.09% at 1.2544 and a breakdown of 1.2495 (2016 low Apr.29) would aim for 1.2124 (monthly low Jun.24 2015). On the other hand, the next hurdle lines up at 1.2548 (20-day sma) followed by 1.3014 (23.6% Fibo of 1.4690-1.2495) and then 1.3108 (55-day sma).


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