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20 Sep 2013
USD/CAD bounces strongly from below 1.0200
FXstreet.com (Barcelona) - The USD/CAD foreign exchange rate is last quoted at fresh session highs 1.0277 off recent 3-month lows at 1.0180 printed in mid London session ahead of later on Canada CPI figures at 12:30 GMT.
USD/CAD downside may be limited
“The base of a year-long bull channel and 200-day simple moving average (SMA) supported the pair around the 1.02 figure,” said Eric Viloria, Senior Currency Strategist at FOREX.com, adding: “An oversold currency pair is vulnerable to a rebound and USDCAD bears should be cautious as the downside may be limited. CPI figures are expected to show slowing inflation to a yearly rate of 1.1% from 1.3% in the prior month. This suggests that inflation is moving towards the lower end of the Bank of Canada’s target range of 1-3% and therefore supports a more dovish stance by the central bank which would likely have a negative impact on the currency.”
USD/CAD key technical levels
Immediate support to the downside for AUD/CAD lies at yesterday's Asian session highs 1.0234, followed by Wednesday's lows at 1.0201, and mentioned fresh 3-month lows at 1.0180. To the upside, closest resistance shows at current levels as Monday/Tuesday's lows 1.0276/81, followed by Sept 12 lows 1.0305, and Sept 18 highs at 1.0319.
USD/CAD downside may be limited
“The base of a year-long bull channel and 200-day simple moving average (SMA) supported the pair around the 1.02 figure,” said Eric Viloria, Senior Currency Strategist at FOREX.com, adding: “An oversold currency pair is vulnerable to a rebound and USDCAD bears should be cautious as the downside may be limited. CPI figures are expected to show slowing inflation to a yearly rate of 1.1% from 1.3% in the prior month. This suggests that inflation is moving towards the lower end of the Bank of Canada’s target range of 1-3% and therefore supports a more dovish stance by the central bank which would likely have a negative impact on the currency.”
USD/CAD key technical levels
Immediate support to the downside for AUD/CAD lies at yesterday's Asian session highs 1.0234, followed by Wednesday's lows at 1.0201, and mentioned fresh 3-month lows at 1.0180. To the upside, closest resistance shows at current levels as Monday/Tuesday's lows 1.0276/81, followed by Sept 12 lows 1.0305, and Sept 18 highs at 1.0319.