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30 May 2014
USD/CAD grinds lower to 1.0820
FXStreet (Edinburgh) - The greenback continues to give ground against its neighbour on Friday, dragging the USD/CAD to fresh weekly lows near 1.0820.
USD/CAD focus on data
Spot is prolonging its correction lower from recent peaks near 1.0950, fuelled by an offered tone around the USD. Ahead in the day, the pair would remain under pressure, as the Canadian GDP figures are due, with consensus expecting the economy to have expanded 1.8% on a yearly basis during Q1 and 0.1% inter-month in March. In the US, PCE, Personal Income/Spending and the Reuters/Michigan index will be in the spotlight ahead of speeches by Fed’s Lacker, Williams and Plosser. “The price action certainly suggests that the early May low of 1.0815—important support now—is at risk and a break below there puts 1.0730/50 on the radar over the next few weeks. Intraday, resistance is 1.0870 and 1.0930”, suggested Shaun Osborne, Chief FX Strategist at TD Securities.
USD/CAD levels to consider
The pair is now retreating 0.19% at 1.0856 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 focus on data
Spot is prolonging its correction lower from recent peaks near 1.0950, fuelled by an offered tone around the USD. Ahead in the day, the pair would remain under pressure, as the Canadian GDP figures are due, with consensus expecting the economy to have expanded 1.8% on a yearly basis during Q1 and 0.1% inter-month in March. In the US, PCE, Personal Income/Spending and the Reuters/Michigan index will be in the spotlight ahead of speeches by Fed’s Lacker, Williams and Plosser. “The price action certainly suggests that the early May low of 1.0815—important support now—is at risk and a break below there puts 1.0730/50 on the radar over the next few weeks. Intraday, resistance is 1.0870 and 1.0930”, suggested Shaun Osborne, Chief FX Strategist at TD Securities.
USD/CAD levels to consider
The pair is now retreating 0.19% at 1.0856 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).