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10 Dec 2014
USD/CAD at daily highs as oil extends losses
FXStreet (Córdoba) - USD/CAD steadied in a slimmer range today after retreating sharply from a 5-year high struck at the 1.1500 area Tuesday in line with a USD pullback across the board.
USD/CAD has spent the last sessions hovering within 1.1435-1.1470 as markets take a breather, but the Canadian dollar remains vulnerable amid low oil prices, with WTI extending losses below $63 a barrel. At time of writing, USD/CAD is trading near the top of the range at 1.1470, 0.23% above its opening price.
BoC Governor Poloz and Senior Deputy Governor Wilkins will hold a press conference to discuss the release of the Financial System Review today at 16.15 GMT.
USD/CAD technical outlook
“USD/CAD closed well off the lows but the wide range on the day after the new high made just above 1.15 and the lower close still left a big, bearish key reversal day on the daily chart. These sorts of signals warrant attention, especially after extended runs—usually. We note the signal but are loathe to read too much into it at this point—we just do not think USD/CAD losses yesterday reflect a real change in sentiment or the trend”, said the TD Securities team. “We may see a little stiffer resistance in the 1.15 area near-term but we also expect firm support on dips to the low 1.14s”.
USD/CAD has spent the last sessions hovering within 1.1435-1.1470 as markets take a breather, but the Canadian dollar remains vulnerable amid low oil prices, with WTI extending losses below $63 a barrel. At time of writing, USD/CAD is trading near the top of the range at 1.1470, 0.23% above its opening price.
BoC Governor Poloz and Senior Deputy Governor Wilkins will hold a press conference to discuss the release of the Financial System Review today at 16.15 GMT.
USD/CAD technical outlook
“USD/CAD closed well off the lows but the wide range on the day after the new high made just above 1.15 and the lower close still left a big, bearish key reversal day on the daily chart. These sorts of signals warrant attention, especially after extended runs—usually. We note the signal but are loathe to read too much into it at this point—we just do not think USD/CAD losses yesterday reflect a real change in sentiment or the trend”, said the TD Securities team. “We may see a little stiffer resistance in the 1.15 area near-term but we also expect firm support on dips to the low 1.14s”.