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18 Sep 2014
USD/CAD recovery stalled near 1.1010
FXStreet (Edinburgh) - The greenback is losing some momentum vs. the Canadian dollar on Thursday, with the USD/CAD now retreating to test session lows in the 1.0970/65 band.
USD/CAD softer on Yellen’s speech
The pair is now intensifying its intraday decline following quite dovish appreciations by Chairwoman Janet Yellen, coming down from overnight peaks near 1.1030. In the data space, US Housing Starts and Building Permits disappointed traders in August, dropping to 956K and 998K, respectively; on the other hand, Initial Claims dropped to 280K in the week ended on September 12th, bettering forecasts at 305K. in the view of Shaun Osborne, Chief FX Strategist at TD Securities, “We remain broadly USD bullish—fundamentally, cyclically and technically we think there is a lot to suggest the USD is poised to rally in the medium-term—but we are uncomfortable with the idea of chasing the USD higher at this point and after an extended move has already occurred”.
USD/CAD significant levels
As of writing the pair is losing 0.31% at 1.0963 with the immediate support at 1.0927 (low Sep.17) followed by 1.0881 (low Sep.8) and finally 1.0841 (low Sep.5). On the upside, a surpass of 1.1023 (high Sep.18) would open the door to 1.1027 (low Sep.12) and then 1.1072 (high Sep.16).
USD/CAD softer on Yellen’s speech
The pair is now intensifying its intraday decline following quite dovish appreciations by Chairwoman Janet Yellen, coming down from overnight peaks near 1.1030. In the data space, US Housing Starts and Building Permits disappointed traders in August, dropping to 956K and 998K, respectively; on the other hand, Initial Claims dropped to 280K in the week ended on September 12th, bettering forecasts at 305K. in the view of Shaun Osborne, Chief FX Strategist at TD Securities, “We remain broadly USD bullish—fundamentally, cyclically and technically we think there is a lot to suggest the USD is poised to rally in the medium-term—but we are uncomfortable with the idea of chasing the USD higher at this point and after an extended move has already occurred”.
USD/CAD significant levels
As of writing the pair is losing 0.31% at 1.0963 with the immediate support at 1.0927 (low Sep.17) followed by 1.0881 (low Sep.8) and finally 1.0841 (low Sep.5). On the upside, a surpass of 1.1023 (high Sep.18) would open the door to 1.1027 (low Sep.12) and then 1.1072 (high Sep.16).