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28 Aug 2013
USD/CAD sideways at 1.047 zone after earlier plunge
FXstreet.com (Chicago) - USD/CAD fell to 6-day lows as the loonie strengthened driven by rising oil prices fueled by risk aversion among market participants after rumors of potential military strike on Syria.
Fed’s tapering and Syrian concerns
In terms of relative strength, the loonie has declined 0.07% against the greenback. In Canada, the S&P/TSX60 closed with 1.36% losses potentially due to Syrian concerns. September possible tapering from the Fed remains in the minds of investors and speculators as stated by Canada Deputy Governor John Murray. Industrial production prices are due later in the week in Canada while the US is to publish its GDP price index for the second quarter of the year later on Thursday.
USD/CAD Technical Level
Technically speaking, the pair trades at 1.0478 between supports at 1.0471 (July 4th lows), 1.0456 (June 29th lows) ahead of 1.0435 (July 18th highs) and resistances at 1.0486 (July 1st lows), 1.05 (August 22nd lows) followed by 1.0526 (July 10th highs). Morgan Stanley reports stops positioned at 1.0350. The FXstreet.com trend index reports the pair as slightly bearish on one-hour timeframe analysis.
Fed’s tapering and Syrian concerns
In terms of relative strength, the loonie has declined 0.07% against the greenback. In Canada, the S&P/TSX60 closed with 1.36% losses potentially due to Syrian concerns. September possible tapering from the Fed remains in the minds of investors and speculators as stated by Canada Deputy Governor John Murray. Industrial production prices are due later in the week in Canada while the US is to publish its GDP price index for the second quarter of the year later on Thursday.
USD/CAD Technical Level
Technically speaking, the pair trades at 1.0478 between supports at 1.0471 (July 4th lows), 1.0456 (June 29th lows) ahead of 1.0435 (July 18th highs) and resistances at 1.0486 (July 1st lows), 1.05 (August 22nd lows) followed by 1.0526 (July 10th highs). Morgan Stanley reports stops positioned at 1.0350. The FXstreet.com trend index reports the pair as slightly bearish on one-hour timeframe analysis.