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16 Oct 2014
USD/CAD regains 1.1350
FXStreet (Edinburgh) - It seems the greenback has shrugged off yesterday’s sharp sell off, now pushing USD/CAD back to the mid-1.1300s and to session highs at the same time.
USD/CAD focus on US docket
After posting fresh multi-year highs just pips shy of 1.1400 the figure on Wednesday, spot was violently dragged more than a big following disappointing data from US retail sales in September, contracting more than expected. Ahead in the session, US industrial production (0.4% exp.) and Initial Claims (290K exp.) are due ahead of speeches by Fed members Bullard, Kocherlakota, Lockhart and Plosser. Strategists at Westpac observed, “USD/CAD’s long term uptrend remains in force unless 1.11 breaks. Ongoing questionable growth momentum in China and the Eurozone should keep commodities on the back foot and keep CAD soft on crosses amid broad USD weakness”.
USD/CAD levels to watch
At the moment the pair is advancing 0.78% at 1.1343 with the next resistance at 1.1385 (2014 high Oct.15) ahead of 1.1400 (psychological level) and then 1.1500 (psychological level). On the downside, a breach of 1.1234 (Tenkan Sen) would open the door to 1.1226 (high Oct.15) and finally 1.1205 (23.6% of 1.0620-1.1385).
USD/CAD focus on US docket
After posting fresh multi-year highs just pips shy of 1.1400 the figure on Wednesday, spot was violently dragged more than a big following disappointing data from US retail sales in September, contracting more than expected. Ahead in the session, US industrial production (0.4% exp.) and Initial Claims (290K exp.) are due ahead of speeches by Fed members Bullard, Kocherlakota, Lockhart and Plosser. Strategists at Westpac observed, “USD/CAD’s long term uptrend remains in force unless 1.11 breaks. Ongoing questionable growth momentum in China and the Eurozone should keep commodities on the back foot and keep CAD soft on crosses amid broad USD weakness”.
USD/CAD levels to watch
At the moment the pair is advancing 0.78% at 1.1343 with the next resistance at 1.1385 (2014 high Oct.15) ahead of 1.1400 (psychological level) and then 1.1500 (psychological level). On the downside, a breach of 1.1234 (Tenkan Sen) would open the door to 1.1226 (high Oct.15) and finally 1.1205 (23.6% of 1.0620-1.1385).