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18 Oct 2013
USD/CAD bounces off lows
FXstreet.com (Edinburgh) -The weakness around the greenback continues to weigh on the USD/CAD on Friday, dragging the pair to fresh weekly lows around 1.0275/70.
USD/CAD lower on rising risk appetite
The pair is netting a week in red figures, retracing previous weekly gains and testing the support band at 1.0280/70. The offered tone around the greenback post-US deal is the main factor behind the pair’s decline, ahead of the NFP due next Tuesday. Data-wise, headline consumer prices in the Canadian economy rose 1.1% on a yearly basis, well below the BoC target and matching August’s gain. Core prices followed suit, up 1.3% YoY. “We think USD/CAD levels in the mid/upper 1.02s represent a decent buying opportunity from a risk/reward point of view now”, noted analysts at TD Securities.
USD/CAD critical levels
The pair is now losing 0.05% at 1.0283 and a breakdown of 1.0280 (low Oct.17) would expose 1.0275 (low Sep.30) and finally 1.0273 (61.8% of 1.0182-1.0420). On the flip side, resistance levels align at 1.0332 (high Oct.17) ahead of 1.0385 (high Oct.16) and then 1.0392 (high Oct.15).
USD/CAD lower on rising risk appetite
The pair is netting a week in red figures, retracing previous weekly gains and testing the support band at 1.0280/70. The offered tone around the greenback post-US deal is the main factor behind the pair’s decline, ahead of the NFP due next Tuesday. Data-wise, headline consumer prices in the Canadian economy rose 1.1% on a yearly basis, well below the BoC target and matching August’s gain. Core prices followed suit, up 1.3% YoY. “We think USD/CAD levels in the mid/upper 1.02s represent a decent buying opportunity from a risk/reward point of view now”, noted analysts at TD Securities.
USD/CAD critical levels
The pair is now losing 0.05% at 1.0283 and a breakdown of 1.0280 (low Oct.17) would expose 1.0275 (low Sep.30) and finally 1.0273 (61.8% of 1.0182-1.0420). On the flip side, resistance levels align at 1.0332 (high Oct.17) ahead of 1.0385 (high Oct.16) and then 1.0392 (high Oct.15).