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23 Jan 2015
USD/CAD resumes the upside
FXStreet (Edinburgh) - After a brief dip to the area of 1.2380, USD/CAD is back to business and reclaiming the 1.2430/40 band.
USD/CAD focus on FOMC
Another negative week for the Canadian dollar, this time exacerbated by the dovish tone struck by the BoC on Wednesday, when it unexpectedly lowered the refi rate to 0.75% from 1.0%. In the meantime, the USD dynamics continue to be the main driver for the pair, with the FOMC meeting being the main highlight in the US docket next week.
“We think USDCAD dips remain a buy but—as with EURUSD—the risk of a more substantial correction cannot be ignored in the next few weeks given the scale of USDCAD gains in the past three months”, recommended Shaun Osborne, Chief FX Strategist at TD Securities.
USD/CAD relevant levels
As of writing the pair is up 0.13% at 1.2420 with the initial barrier at 1.2507 (high Apr.21 2009) followed by 1.2600 (psychological level) and then 1.2682 (161.8% of 0.9407-1.0658). On the other hand, a breach of 1.2315 (low Jan.22) would expose 1.2200 (psychological level) and then 1.2112 (Tenkan Sen).
USD/CAD focus on FOMC
Another negative week for the Canadian dollar, this time exacerbated by the dovish tone struck by the BoC on Wednesday, when it unexpectedly lowered the refi rate to 0.75% from 1.0%. In the meantime, the USD dynamics continue to be the main driver for the pair, with the FOMC meeting being the main highlight in the US docket next week.
“We think USDCAD dips remain a buy but—as with EURUSD—the risk of a more substantial correction cannot be ignored in the next few weeks given the scale of USDCAD gains in the past three months”, recommended Shaun Osborne, Chief FX Strategist at TD Securities.
USD/CAD relevant levels
As of writing the pair is up 0.13% at 1.2420 with the initial barrier at 1.2507 (high Apr.21 2009) followed by 1.2600 (psychological level) and then 1.2682 (161.8% of 0.9407-1.0658). On the other hand, a breach of 1.2315 (low Jan.22) would expose 1.2200 (psychological level) and then 1.2112 (Tenkan Sen).