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12 Mar 2014
USD/CAD reaches 2-week highs
FXStreet (Córdoba) - The USD/CAD accelerated higher triggering stops and reached a 2-week high at the beginning of the American session.
The Loonie as other currencies link to commodities weakened Wednesday amid concerns over China and lower copper and crude oil prices. The USD/CAD broke above previous weekly highs around 1.1130, and rose to a high of 1.1153 in recent dealings. At time of writing, the pair is trading at the 1.1145 zone, recording a 0.4% gain on the day.
USD/CAD technical outlook
"Support is at 1.0955, as long as this level holds, the price action in the range could be treated as consolidation of the uptrend from 1.0182 (Sept 19, 2013 low), one more rise to 1.1500 area is still possible after consolidation", said Franco Shao, analyst at ForexCycle.com. "Resistance is at 1.1192, a break above this level will signal resumption of the uptrend".
"However, a breakdown below 1.0955 support will indicate that the uptrend from 1.0182 had completed at 1.1224 already, then the following downward movement could bring price back to 1.0700 zone", the analyst added.
The Loonie as other currencies link to commodities weakened Wednesday amid concerns over China and lower copper and crude oil prices. The USD/CAD broke above previous weekly highs around 1.1130, and rose to a high of 1.1153 in recent dealings. At time of writing, the pair is trading at the 1.1145 zone, recording a 0.4% gain on the day.
USD/CAD technical outlook
"Support is at 1.0955, as long as this level holds, the price action in the range could be treated as consolidation of the uptrend from 1.0182 (Sept 19, 2013 low), one more rise to 1.1500 area is still possible after consolidation", said Franco Shao, analyst at ForexCycle.com. "Resistance is at 1.1192, a break above this level will signal resumption of the uptrend".
"However, a breakdown below 1.0955 support will indicate that the uptrend from 1.0182 had completed at 1.1224 already, then the following downward movement could bring price back to 1.0700 zone", the analyst added.