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27 Mar 2014
USD/CAD capped by 1.1100
FXStreet (Edinburgh) - The USD/CAD is extending the overnight consolidation pattern, with spot navigating a narrow range and limiting the upside to the 1.1100 area so far.
USD/CAD no reaction after US data
The pair kept the composure after US GDP missed expectations in Q4, expanding at an annual pace of 2.6% vs. 2.7% estimated. Further US data showed Initial Claims dropping to 311K in the week ending on March 21st. “On the charts, the move down has started to smooth out a little overnight so we may see a modest rebound in the market in the next day or so. The USD is finding support around the 40-day MA (1.1086) and, as we noted last week, tests of this benchmark have been buying opportunities rather than a sign that the bull trend is in danger in the past few months”, suggested Shaun Osborne, Chief FX Strategist at TD Securities.
USD/CAD key levels
At the moment the pair is retreating 0.08% at 1.1093 with the initial support at 1.1080 (low Mar.26) followed by 1.1033 (daily cloud top) and then 1.1025 (low Mar.18). On the other hand, a break above 1.1170 (high Mar.26) would expose 1.1279 (2014 high Mar.20) and finally 1.1300 (psychological level).
USD/CAD no reaction after US data
The pair kept the composure after US GDP missed expectations in Q4, expanding at an annual pace of 2.6% vs. 2.7% estimated. Further US data showed Initial Claims dropping to 311K in the week ending on March 21st. “On the charts, the move down has started to smooth out a little overnight so we may see a modest rebound in the market in the next day or so. The USD is finding support around the 40-day MA (1.1086) and, as we noted last week, tests of this benchmark have been buying opportunities rather than a sign that the bull trend is in danger in the past few months”, suggested Shaun Osborne, Chief FX Strategist at TD Securities.
USD/CAD key levels
At the moment the pair is retreating 0.08% at 1.1093 with the initial support at 1.1080 (low Mar.26) followed by 1.1033 (daily cloud top) and then 1.1025 (low Mar.18). On the other hand, a break above 1.1170 (high Mar.26) would expose 1.1279 (2014 high Mar.20) and finally 1.1300 (psychological level).