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11 Feb 2014
USD/CAD bounces off 1.1040
FXStreet (Edinburgh) - The weakness around the USD/CAD seems to have found some decent support near 1.1040 on Tuesday, ahead of Yellen’s testimony.
USD/CAD capped near 1.1100
After posting multi-year peaks beyond the 1.1200 handle in late January, the pair’s rally run out of legs and sparked a correction lower to sub-1.10 levels in the wake of January’s Payrolls. In the meantime, market participants will closely follow Chairwoman Yellen’s testimony in order to find better clues regarding the direction of USD/CAD in the near term. “A close today at 1.107 and above and a good retail sales report from the US tomorrow will make us more confident of achieving 1.111/20 by Friday. Otherwise, we remain cautious about topside exposure”, suggested Stephen Gallo, European Head FX Strategy at BMO.
USD/CAD key levels
The pair is now up 0.01% at 1.1057 with the next resistance at 1.1080 (high Feb.7) followed by 1.1097 (Tenkan Sen line) and then 1.1100 (10-d MA). On the downside, a break below 1.0968 (low Feb.7) would aim for 1.0942 (low Jan.21) and then 1.0930 (low Jan.20).
USD/CAD capped near 1.1100
After posting multi-year peaks beyond the 1.1200 handle in late January, the pair’s rally run out of legs and sparked a correction lower to sub-1.10 levels in the wake of January’s Payrolls. In the meantime, market participants will closely follow Chairwoman Yellen’s testimony in order to find better clues regarding the direction of USD/CAD in the near term. “A close today at 1.107 and above and a good retail sales report from the US tomorrow will make us more confident of achieving 1.111/20 by Friday. Otherwise, we remain cautious about topside exposure”, suggested Stephen Gallo, European Head FX Strategy at BMO.
USD/CAD key levels
The pair is now up 0.01% at 1.1057 with the next resistance at 1.1080 (high Feb.7) followed by 1.1097 (Tenkan Sen line) and then 1.1100 (10-d MA). On the downside, a break below 1.0968 (low Feb.7) would aim for 1.0942 (low Jan.21) and then 1.0930 (low Jan.20).