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28 Jan 2014
USD/CAD off multi-year highs
FXstreet.com (Edinburgh) - The USD rally continues to push the USD/CAD higher on Tuesday, now easing back from the 1.1180 area, levels last seen in July 2009.
USD/CAD warming up for 1.12?
A positive conclusion – say, in line with forecasts - of the FOMC gathering on Wednesday could well see spot leaving behind the 1.12 psychological barrier. Disappointing Durable Goods Orders in the US economy during December managed to briefly dent the intraday upside, although the pair managed to recover the ground lost. “We spot intraday support in the 1.1115/20 area now and note that short-term, bull trend momentum signals are picking up again and aligning with the still bullishly-oriented longer-term signals. The technical signals look to have the makings of another powerful leg higher in USDCAD”, noted Shaun Osborne, Chief FX Strategist at TD Securities.
USD/CAD levels to watch
The pair is now up 0.34% at 1.1151 with the next resistance at 1.1176 (2014 high Jan.28) ahead of 1.1200 (psychological level) and finally 1.1226 (high Jul.16 2009). On the downside, a break below 1.1052 (low Jan.24) would aim for1.0942 (low Jan.21) and then 1.0930 (low Jan.20).
USD/CAD warming up for 1.12?
A positive conclusion – say, in line with forecasts - of the FOMC gathering on Wednesday could well see spot leaving behind the 1.12 psychological barrier. Disappointing Durable Goods Orders in the US economy during December managed to briefly dent the intraday upside, although the pair managed to recover the ground lost. “We spot intraday support in the 1.1115/20 area now and note that short-term, bull trend momentum signals are picking up again and aligning with the still bullishly-oriented longer-term signals. The technical signals look to have the makings of another powerful leg higher in USDCAD”, noted Shaun Osborne, Chief FX Strategist at TD Securities.
USD/CAD levels to watch
The pair is now up 0.34% at 1.1151 with the next resistance at 1.1176 (2014 high Jan.28) ahead of 1.1200 (psychological level) and finally 1.1226 (high Jul.16 2009). On the downside, a break below 1.1052 (low Jan.24) would aim for1.0942 (low Jan.21) and then 1.0930 (low Jan.20).