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29 May 2014
USD/CAD drops below 1.0830
FXStreet (Edinburgh) - The greenback is now accelerating its downside, pushing the USD/CAD to test multi-week lows in the 1.0835/30 band.
USD/CAD in 3-week lows
The selling pressure is rapidly building up around the USD on Wednesday, allowing spot to re-visit levels last seen in early May. Adding to the downbeat sentiment, the second revision of the US GDP showed the economy contracted further than expected during the first quarter, 1.0%. Additional data showed Pending Home Sales also disappointing investors in April, growing 0.4% inter-month. According to Shaun Osborne, Chief FX Strategist at TD Securities, “Short-term price patterns are still suggestive of a minor low in place for USDCAD but the market’s failure to extend through the upper 1.08 area yesterday leaves the near-term tone consolidative… Support in the low/mid 1.08s still looks fairly secure but the loss of support at 1.0815/35 would open up the downside a little more for USDCAD (towards 1.0750 potentially). On the topside, we still need to see the USD move above 1.0880 to steady and have a shot at improving”.
USD/CAD significant levels
The pair is now retreating 0.41% at 1.0832 with the next support at 1.0814 (low May 8) ahead of 1.0762 (low Jan.8) and then 1.0737 (high Dec.20). On the flip side, a breakout of 1.0881 (high May 26) would open the door to 1.0909 (high May 23) and finally 1.0932 (high May 22).
USD/CAD in 3-week lows
The selling pressure is rapidly building up around the USD on Wednesday, allowing spot to re-visit levels last seen in early May. Adding to the downbeat sentiment, the second revision of the US GDP showed the economy contracted further than expected during the first quarter, 1.0%. Additional data showed Pending Home Sales also disappointing investors in April, growing 0.4% inter-month. According to Shaun Osborne, Chief FX Strategist at TD Securities, “Short-term price patterns are still suggestive of a minor low in place for USDCAD but the market’s failure to extend through the upper 1.08 area yesterday leaves the near-term tone consolidative… Support in the low/mid 1.08s still looks fairly secure but the loss of support at 1.0815/35 would open up the downside a little more for USDCAD (towards 1.0750 potentially). On the topside, we still need to see the USD move above 1.0880 to steady and have a shot at improving”.
USD/CAD significant levels
The pair is now retreating 0.41% at 1.0832 with the next support at 1.0814 (low May 8) ahead of 1.0762 (low Jan.8) and then 1.0737 (high Dec.20). On the flip side, a breakout of 1.0881 (high May 26) would open the door to 1.0909 (high May 23) and finally 1.0932 (high May 22).