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22 Apr 2016
USD/CAD breaks below 0.2700 amid oil price recovery
The Canadian dollar recovered ground against its American rival in the Asian session, with USD/CAD resuming its recent downtrend after a temporary reversal seen yesterday.
USD/CAD drops below 5-DMA
Currently, the USD/CAD pair drops -0.29% to fresh session lows of 1.2694, failing to resist above 1.27 handle. The bears fought back control and now tighten their grip on the pair as the recovery in the Loonie gathers pace in tandem with a rebound in the oil prices. Meanwhile, both crude benchmarks are seen extending gains and trade +1.50% higher so far this session.
The renewed sell-off in USD/CAD can be also explained by a sudden bout of selling interest that gripped the US dollar across the board. The US dollar, when measured by the USD index, drops -0.16% to 94.47, retracing from 94.68 – 3-day tops.
Focus now remains on a set of crucial economic releases from Canada due later today, including CPI and retail sales figures. Retail sales in Canada are expected to fall 0.8% on a monthly basis in February, deterioration from the 2.1% hike a month ago. While, CPI is expected to post a 0.5% increase m/m in March, up from the 0.2% booked previously. Further, Baker Hughes oil rigs count data will be also closely eyed for fresh direction on the oil prices.
USD/CAD Technical Levels
To the upside, the next resistances are seen near 1.2774/76 (10-DMA/ daily R1) and 1.2800 (round number). To the downside, immediate support might be located at 1.2652/50 (daily S1/ psychological levels) and below that 1.2594 (Apr 20 Low).
USD/CAD drops below 5-DMA
Currently, the USD/CAD pair drops -0.29% to fresh session lows of 1.2694, failing to resist above 1.27 handle. The bears fought back control and now tighten their grip on the pair as the recovery in the Loonie gathers pace in tandem with a rebound in the oil prices. Meanwhile, both crude benchmarks are seen extending gains and trade +1.50% higher so far this session.
The renewed sell-off in USD/CAD can be also explained by a sudden bout of selling interest that gripped the US dollar across the board. The US dollar, when measured by the USD index, drops -0.16% to 94.47, retracing from 94.68 – 3-day tops.
Focus now remains on a set of crucial economic releases from Canada due later today, including CPI and retail sales figures. Retail sales in Canada are expected to fall 0.8% on a monthly basis in February, deterioration from the 2.1% hike a month ago. While, CPI is expected to post a 0.5% increase m/m in March, up from the 0.2% booked previously. Further, Baker Hughes oil rigs count data will be also closely eyed for fresh direction on the oil prices.
USD/CAD Technical Levels
To the upside, the next resistances are seen near 1.2774/76 (10-DMA/ daily R1) and 1.2800 (round number). To the downside, immediate support might be located at 1.2652/50 (daily S1/ psychological levels) and below that 1.2594 (Apr 20 Low).