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5 Mar 2014
USD/CAD dumps to a low 1.1043
FXStreet (Guatemala) - Another set of poor data from the US and a much softer dollar, the USD/CAD which rallied with news that the BoC will indeed leave rates on hold, finally took a turn to the downside.
The BoC, as expected kept a neutral stance, leaving rates at 1%. The Bank has kept overall inflation and the growth assessment the same despite higher January CPI readings. At the same times ad the BoC, US Non-manufacturing ISM fells to 51.6 and came in much weaker than expected. Earlier, the employment index tumbled to 47.5 in February from 56.4 in January which may put pressure on the Fed. Strategists at TD Securities noted that the daily pattern of trade in funds highlights the indecision that has descended on the USD/CAD market after the initial rally from the low 1.09 area last month. “The market can neither sustain a bid above 1.1150 nor an offered tone below 1.1050 on a daily close basis for now. We remain constructive—longer-term trend signals are still bullish and the market firmly rejected the dip to 1.0910 on the daily and weekly chart—now major support. We look for firm support in the low 1.10s (40-day MA at 1.1040)”.
USD/CAD Levels
The 20 DMA is 1.1052, the 50 DMA is 1.0958 and the 200 DMA is 1.0551. RSI (14) reads 44.98. Supports are ascending from 1.0977, 1.1000, 1.1026, 1.1035. Spot is 1.1099, 1.1160, 1.1196, 1.1225 and 1.1300
The BoC, as expected kept a neutral stance, leaving rates at 1%. The Bank has kept overall inflation and the growth assessment the same despite higher January CPI readings. At the same times ad the BoC, US Non-manufacturing ISM fells to 51.6 and came in much weaker than expected. Earlier, the employment index tumbled to 47.5 in February from 56.4 in January which may put pressure on the Fed. Strategists at TD Securities noted that the daily pattern of trade in funds highlights the indecision that has descended on the USD/CAD market after the initial rally from the low 1.09 area last month. “The market can neither sustain a bid above 1.1150 nor an offered tone below 1.1050 on a daily close basis for now. We remain constructive—longer-term trend signals are still bullish and the market firmly rejected the dip to 1.0910 on the daily and weekly chart—now major support. We look for firm support in the low 1.10s (40-day MA at 1.1040)”.
USD/CAD Levels
The 20 DMA is 1.1052, the 50 DMA is 1.0958 and the 200 DMA is 1.0551. RSI (14) reads 44.98. Supports are ascending from 1.0977, 1.1000, 1.1026, 1.1035. Spot is 1.1099, 1.1160, 1.1196, 1.1225 and 1.1300