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29 Jul 2014
USD/CAD retreats from peaks
FXStreet (Edinburgh) - After hitting session highs near 1.0830, the USD/CAD is now drifting lower to the 1.0820/15 band.
USD/CAD in 5-week highs
The firm demand for the US dollar is lifting spot to fresh multi-week highs above 1.0800 the figure on Tuesday, extending the bounce off July troughs around the 1.0620 region. In the data front, house prices tracked by the S&P/Case-Shiller index advanced 9.3% YoY in May, missing estimates for a 10.0% gain and down from April’s 10.8%. “We’re still heading into tomorrow’s US macro events with a relatively ‘rich’ valuation in USDCAD, so we look for 1.0825/30 to act as the top end of the range until then, unless a sharp selloff in ‘risk assets’ triggers a weaker CAD. Meanwhile, 1.0775/90 is still likely to act as support”, noted Stephen Gallo, European Head of FX Strategy at BMO.
USD/CAD levels to watch
As of writing the pair is up 0.17% at 1.0818 and a breakout of 1.0831 (61.8% of 1.0962-1.0620) would target 1.0832 (200-d MA) en route to 1.0885 (daily cloud top). On the downside, the immediate support lines up at 1.0801 (low Jul.28) ahead of 1.0768 (Daily Tenkan) and finally 1.0763 (10-d MA).
USD/CAD in 5-week highs
The firm demand for the US dollar is lifting spot to fresh multi-week highs above 1.0800 the figure on Tuesday, extending the bounce off July troughs around the 1.0620 region. In the data front, house prices tracked by the S&P/Case-Shiller index advanced 9.3% YoY in May, missing estimates for a 10.0% gain and down from April’s 10.8%. “We’re still heading into tomorrow’s US macro events with a relatively ‘rich’ valuation in USDCAD, so we look for 1.0825/30 to act as the top end of the range until then, unless a sharp selloff in ‘risk assets’ triggers a weaker CAD. Meanwhile, 1.0775/90 is still likely to act as support”, noted Stephen Gallo, European Head of FX Strategy at BMO.
USD/CAD levels to watch
As of writing the pair is up 0.17% at 1.0818 and a breakout of 1.0831 (61.8% of 1.0962-1.0620) would target 1.0832 (200-d MA) en route to 1.0885 (daily cloud top). On the downside, the immediate support lines up at 1.0801 (low Jul.28) ahead of 1.0768 (Daily Tenkan) and finally 1.0763 (10-d MA).