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3 Feb 2015
USD/CAD keeps falling, below 1.2400
FXStreet (Edinburgh) - The Canadian dollar is appreciating further vs. its southern neighbor on Tuesday, dragging USD/CAD to multi-day lows in sub-1.2400 levels.
USD/CAD weaker on risk, oil
Crude oil prices continue to improve during the first half of the week, managing to partially trim the recent sharp pullback and thus supporting the bid tone in the CAD. A favourable environment for the riskier assets is also collaborating with the renewed CAD strength, dragging spot further from recent peaks around 1.2800 the figure, level last traded in March 2009.
From a technical perspective, Chief FX Strategist Camilla Sutton at Scotiabank commented “As long as WTI remains above $50 we expect USDCAD to temporarily retrace lower; however in the medium term USDCAD is still vulnerable to upside risk from a fundamental backdrop that has shifted dramatically”.
USD/CAD relevant levels
The pair is now losing 1.33% at 1.2409 with the immediate support lying at 1.2352 (low Feb.3) ahead of 1.2313 (low Jan.22) and finally 1.2300 (psychological level). On the other hand, a break above 1.2512 (low Jan.29) would aim for 1.2600 (psychological level) and then 1.2645 (hourly high Feb.3).
USD/CAD weaker on risk, oil
Crude oil prices continue to improve during the first half of the week, managing to partially trim the recent sharp pullback and thus supporting the bid tone in the CAD. A favourable environment for the riskier assets is also collaborating with the renewed CAD strength, dragging spot further from recent peaks around 1.2800 the figure, level last traded in March 2009.
From a technical perspective, Chief FX Strategist Camilla Sutton at Scotiabank commented “As long as WTI remains above $50 we expect USDCAD to temporarily retrace lower; however in the medium term USDCAD is still vulnerable to upside risk from a fundamental backdrop that has shifted dramatically”.
USD/CAD relevant levels
The pair is now losing 1.33% at 1.2409 with the immediate support lying at 1.2352 (low Feb.3) ahead of 1.2313 (low Jan.22) and finally 1.2300 (psychological level). On the other hand, a break above 1.2512 (low Jan.29) would aim for 1.2600 (psychological level) and then 1.2645 (hourly high Feb.3).