12 May 2014
USD/CAD consolidates below 1.0900
FXStreet (Córdoba) - The USD/CAD has come under mild pressure and it is correcting from Friday’s highs at the beginning of the American session, as the USD fails to sustain gains above 1.0900.
The USD/CAD rallied toward a high of 1.0915 last week, but failed to hold above the psychological level and entered a consolidation phase just below. However, the USD/CAD lost the 1.0885 area and dropped to a low of 1.0872 in recent dealings.
With no data scheduled for the rest of the day to trigger directional moves, the USD/CAD might cling to familiar ranges. At time of writing, the USD/CAD is trading at the 1.0885 zone, 0.12% below its opening price.
USD/CAD outlook
“Friday’s disappointing employment data on Friday was enough to remind markets that the fundamental backdrop does not support an extended CAD rally. Our core view for USD/CAD is that it is comfortable trading either side of 1.1000”, said Camilla Sutton, analyst at Scotiabank.
Sutton notes that the technical perspective however is still bearish. “Spot has retraced from its lows but technicals still warn of downside. Near‐term support lies at Friday’s open of 1.0831; while resistance lies at the 100‐day MA of 1.0917 followed by the 200‐day MA at 1.0968”, said the analyst.
The USD/CAD rallied toward a high of 1.0915 last week, but failed to hold above the psychological level and entered a consolidation phase just below. However, the USD/CAD lost the 1.0885 area and dropped to a low of 1.0872 in recent dealings.
With no data scheduled for the rest of the day to trigger directional moves, the USD/CAD might cling to familiar ranges. At time of writing, the USD/CAD is trading at the 1.0885 zone, 0.12% below its opening price.
USD/CAD outlook
“Friday’s disappointing employment data on Friday was enough to remind markets that the fundamental backdrop does not support an extended CAD rally. Our core view for USD/CAD is that it is comfortable trading either side of 1.1000”, said Camilla Sutton, analyst at Scotiabank.
Sutton notes that the technical perspective however is still bearish. “Spot has retraced from its lows but technicals still warn of downside. Near‐term support lies at Friday’s open of 1.0831; while resistance lies at the 100‐day MA of 1.0917 followed by the 200‐day MA at 1.0968”, said the analyst.