USD/CAD Firm Above 1.29 Ahead of Data

USD/CAD Firm Above 1.29 Ahead of Data

9 May 2016, 14:55
Roberto Jacobs

USD/CAD Firm Above 1.29 Ahead of Data

The greenback retains its buoyant tone on Monday, with USD/CAD keeping the trade in the area of daily highs around 1.2930/40.

USD/CAD stronger pre-data

The pair is extending its recent rally from multi-month lows in the 1.2460 area posted in early May, retaking the 1.2900 handle although gains appear so far limited around the mid-1.2900s.

In the meantime, crude oil prices are deflating from earlier tops near the $46.00 mark, returning to the $45.00 area and removing some support to CAD. Data wise, Canadian Housing Starts are due later followed by the Fed’s Labor Market Conditions Index and the speech by FOMC’s Kashkari.

USD/CAD significant levels

As of writing the pair is up 0.27% at 1.2944 and a breakout of 1.2986 (23.6% Fibo of 1.4692-1.2461) would aim for 1.2992 (high Apr.18) and then 1.3036 (55-day sma). On the flip side, the next support aligns at 1.2736 (20-day sma) followed by 1.2461 (2016 low May 3) and finally 1.2124 (monthly low Jun.24 2015).


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