15 Jul 2014
USD/CAD muted on US data
FXStreet (Edinburgh) - The USD/CAD largely ignored today’s US docket, with spot hovering over the 1.0730/35 band so far.
USD/CAD supported at 1.0710
Spot continues to extend its bounce off recent lows around 1.0710, as risk aversion is creeping back to the markets. Mixed data from today’s US docket showed disappointing retail sales for the month of June juxtaposed with a better-than-expected manufacturing gauge from the Empire State index for July. “The short-term charts reflect the sharp bounce in the USD Friday after successive tests and rejections of 1.0620/30; a minor double bottom looks to have formed which suggests that USDCAD has not, yet, realized its full potential (measured move target of 1.0766) in the short-term”, noted Shaun Osborne, Chief FX Strategist at TD Securities.
USD/CAD levels to watch
At the moment the pair is up 0.20% at 1.0734 and a break above 1.0748 (high Jul.14) would target 1.0751 (38.2% of 1.0962-1.0620) en route to 1.0762 (high Jun.23). On the downside, the initial support aligns at 1.0703 (38.2% of 1.0630-1.0748) followed by 1.0630 (low Jul.11) and finally (1.0620) low Jul.3).
USD/CAD supported at 1.0710
Spot continues to extend its bounce off recent lows around 1.0710, as risk aversion is creeping back to the markets. Mixed data from today’s US docket showed disappointing retail sales for the month of June juxtaposed with a better-than-expected manufacturing gauge from the Empire State index for July. “The short-term charts reflect the sharp bounce in the USD Friday after successive tests and rejections of 1.0620/30; a minor double bottom looks to have formed which suggests that USDCAD has not, yet, realized its full potential (measured move target of 1.0766) in the short-term”, noted Shaun Osborne, Chief FX Strategist at TD Securities.
USD/CAD levels to watch
At the moment the pair is up 0.20% at 1.0734 and a break above 1.0748 (high Jul.14) would target 1.0751 (38.2% of 1.0962-1.0620) en route to 1.0762 (high Jun.23). On the downside, the initial support aligns at 1.0703 (38.2% of 1.0630-1.0748) followed by 1.0630 (low Jul.11) and finally (1.0620) low Jul.3).