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2 Jul 2014
USD/CAD improves to 1.0650
FXStreet (Edinburgh) - The better-than-expected ADP report from the US economy is boosting the greenback now, lifting the USD/CAD to print session highs near 1.0650.
USD/CAD bounces off 1.0620
The pair found decent support in the proximities of 1.0620 although the auspicious result from the US ADP gave it extra wings to the mid-1.0600s. The US private sector added 281K jobs in June, leaving behind expectations for 205K and largely surpassing May’s 179K. Market participants will now turn their attention to Yellen’s speech due later, with consensus amongst traders pointing to a softer tone from the Fed Chairwoman. “Given that the fundamentals have not shifted in CAD's favor, we think, current levels for the cross would offer opportunities to rebuild CAD shorts. As such, key support at 1.0589 – the low thus far for the year recorded on Jan 2nd – will likely prove a psychological barrier for USDCAD”, commented Shaun Osborne, Chief FX Strategy at TD Securities.
USD/CAD levels to consider
At the moment the pair is up 0.18% at 1.0651 with the next resistance at 1.0762 (high Jun.23) ahead of 1.0792 (200-d MA) and then 1.0898 (high Jun.18). On the downside, a break below 1.0601 (61.8% of 1.0182-1.1279) would aim for 1.0589 (2014 low Jan.2) and finally 1.0582 (low Dec.23).
USD/CAD bounces off 1.0620
The pair found decent support in the proximities of 1.0620 although the auspicious result from the US ADP gave it extra wings to the mid-1.0600s. The US private sector added 281K jobs in June, leaving behind expectations for 205K and largely surpassing May’s 179K. Market participants will now turn their attention to Yellen’s speech due later, with consensus amongst traders pointing to a softer tone from the Fed Chairwoman. “Given that the fundamentals have not shifted in CAD's favor, we think, current levels for the cross would offer opportunities to rebuild CAD shorts. As such, key support at 1.0589 – the low thus far for the year recorded on Jan 2nd – will likely prove a psychological barrier for USDCAD”, commented Shaun Osborne, Chief FX Strategy at TD Securities.
USD/CAD levels to consider
At the moment the pair is up 0.18% at 1.0651 with the next resistance at 1.0762 (high Jun.23) ahead of 1.0792 (200-d MA) and then 1.0898 (high Jun.18). On the downside, a break below 1.0601 (61.8% of 1.0182-1.1279) would aim for 1.0589 (2014 low Jan.2) and finally 1.0582 (low Dec.23).