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31 Dec 2013
USD/CAD falls to daily lows
FXstreet.com (Córdoba) - The USD/CAD extended intraday slide at the beginning of the American session following the latest string of US data.
US consumer confidence came in at 78.1, exceeding expectations of 76.0 and also above the 72.0 printed the previous month. Meanwhile, home price index rose slightly above expectations while the Chicago PMI disappointed. The USD/CAD pierced below the 1.0630 support area and stretched to a low of 1.0615 before finding support. At time of writing, the pair is trading around 1.0620, 0.2% below its opening price.
USD/CAD technical outlook
"The market looks comfortable above 1.06 but month-end flows could see spot come under a little more pressure intraday—with the market perhaps taking a run at support in the low 1.06 area", says the TD Securities team. "Technically, funds looks a bit heavy after three rejections of the 1.0725 area over the holiday period. We still feel that the broader set up in USD/CAD is positive from a medium-term point of view (considering diverging Fed/BoC policy dynamics) so we look for limited USD weakness overall from here before the USD pushes higher again in early 2014. Sub-1.06 levels are unlikely to be sustained moving into January".
US consumer confidence came in at 78.1, exceeding expectations of 76.0 and also above the 72.0 printed the previous month. Meanwhile, home price index rose slightly above expectations while the Chicago PMI disappointed. The USD/CAD pierced below the 1.0630 support area and stretched to a low of 1.0615 before finding support. At time of writing, the pair is trading around 1.0620, 0.2% below its opening price.
USD/CAD technical outlook
"The market looks comfortable above 1.06 but month-end flows could see spot come under a little more pressure intraday—with the market perhaps taking a run at support in the low 1.06 area", says the TD Securities team. "Technically, funds looks a bit heavy after three rejections of the 1.0725 area over the holiday period. We still feel that the broader set up in USD/CAD is positive from a medium-term point of view (considering diverging Fed/BoC policy dynamics) so we look for limited USD weakness overall from here before the USD pushes higher again in early 2014. Sub-1.06 levels are unlikely to be sustained moving into January".