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26 Feb 2014
USD/CAD aims to 1.1100
FXStreet (Edinburgh) - A sudden bout of USD strength is now lifting the USD/CAD back to the boundaries of 1.1100 the figure on Wednesday.
USD/CAD trimming losses
Choppy week for the pair so far, currently recovering the ground lost after yesterday’s decline. The neutral bias from the BoC plus increasing risk appetite were bolstering the recent strength surrounding the CAD, dragging spot lower from last week’s peaks near 1.1200. “We maintain our view that growth risks and a dovish BoC could constrain the CAD on a 1 to 3 mth view. However, assuming a strengthening US recovery and the effects of a weaker CAD lend support to the Canadian economy in the months ahead, we expect a moderately firmer CAD to emerge in H2. We expect USD/CAD to trade close to the 1.11 level on a 1 to 3 mth view and trend moderately lower towards 1.09 on a 12 mth view”, argued Jane Foley, Senior Currency Strategist at Rabobank.
USD/CAD levels to consider
As of writing the pair is up 0.04% at 1.1091 and a surpass of 1.1097 (high Feb.25) would aim for 1.1143 (high Feb.24) and then 1.1196 (high Jan.21). On the downside, the immediate support aligns at 1.1055 (low Feb.25) ahead of 1.1050 (low Feb.24) and finally 1.1038 (10-d MA).
USD/CAD trimming losses
Choppy week for the pair so far, currently recovering the ground lost after yesterday’s decline. The neutral bias from the BoC plus increasing risk appetite were bolstering the recent strength surrounding the CAD, dragging spot lower from last week’s peaks near 1.1200. “We maintain our view that growth risks and a dovish BoC could constrain the CAD on a 1 to 3 mth view. However, assuming a strengthening US recovery and the effects of a weaker CAD lend support to the Canadian economy in the months ahead, we expect a moderately firmer CAD to emerge in H2. We expect USD/CAD to trade close to the 1.11 level on a 1 to 3 mth view and trend moderately lower towards 1.09 on a 12 mth view”, argued Jane Foley, Senior Currency Strategist at Rabobank.
USD/CAD levels to consider
As of writing the pair is up 0.04% at 1.1091 and a surpass of 1.1097 (high Feb.25) would aim for 1.1143 (high Feb.24) and then 1.1196 (high Jan.21). On the downside, the immediate support aligns at 1.1055 (low Feb.25) ahead of 1.1050 (low Feb.24) and finally 1.1038 (10-d MA).