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3 Mar 2014
USD/CAD off highs, back to 1.1080
FXStreet (Edinburgh) - After climbing as high as 1.1110, the USD/CAD run out of legs and is retracing those initial gains to the 1.1080/75 region.
USD/CAD lower despite better ISM
It seems spot is now taking a breather, keeping the trade below the 1.1100 handle despite results from the US manufacturing sector exceeded expectations in February, with the ISM Manufacturing at 53.2 vs. 52.0 exp. and the Markit PMI at 57.1 act. vs. 56.6 exp. According to Shaun Osborne, Chief FX Strategist at TD Securities, “Negative price signals from the mid/upper 1.11 area over the past two weeks suggest a firm ceiling in place in the short-term at least… We look for strong support in the low 1.10 area… with short-term support reinforced by the 40-day MA on the daily chart (1.1026 today)”.
USD/CAD levels to consider
At the moment the pair is losing 0.12% at 1.1087 with the next support at 1.1038 (low Mar.3) ahead of 1.1000 (psychological level) and then 1.0959 (daily cloud top). On the upside, a breakout of 1.1148 (high Feb.28) would open the door to 1.1160 (high Feb.27) and finally 1.1225 (2014 high Jan.31).
USD/CAD lower despite better ISM
It seems spot is now taking a breather, keeping the trade below the 1.1100 handle despite results from the US manufacturing sector exceeded expectations in February, with the ISM Manufacturing at 53.2 vs. 52.0 exp. and the Markit PMI at 57.1 act. vs. 56.6 exp. According to Shaun Osborne, Chief FX Strategist at TD Securities, “Negative price signals from the mid/upper 1.11 area over the past two weeks suggest a firm ceiling in place in the short-term at least… We look for strong support in the low 1.10 area… with short-term support reinforced by the 40-day MA on the daily chart (1.1026 today)”.
USD/CAD levels to consider
At the moment the pair is losing 0.12% at 1.1087 with the next support at 1.1038 (low Mar.3) ahead of 1.1000 (psychological level) and then 1.0959 (daily cloud top). On the upside, a breakout of 1.1148 (high Feb.28) would open the door to 1.1160 (high Feb.27) and finally 1.1225 (2014 high Jan.31).