USD/CAD plunges to monthly low, focus on US CPI

Having failed to build on early tepid recovery gains to 1.3134, the USD/CAD pair turned sharply lower and has now plunged to fresh monthly low. 

Currently trading at 50-day SMA support near 1.3065 region, a broad based greenback weakness, following Monday's disappointing US manufacturing data, has been one of the key factors driving the pair lower on Tuesday. Moreover, upbeat sentiment surrounding WTI crude oil prices, now trading comfortable above $50.00 mark, is further benefitting the commodity-linked currency – loonie, and exerting additional selling pressure around the major. 

The US Dollar bulls now look forward to the release of US CPI print and Canadian Manufacturing Sales for September, later during NA session, for immediate respite ahead of BOC monetary policy decision on Wednesday.

Technical levels to watch

From current levels, 1.3050 level seems to act as immediate support below which the pair is likely to head immediately towards testing 100-day SMA support near 1.3025 region. On the upside, 1.3100 handle now becomes immediate resistance and even if the pair manages to clear this immediate hurdle, further upside might now be capped near 1.3140 strong horizontal resistance.

  • 1 Week
  • 1 Month
  • 1 Quarter

1 Week Avg Forecast 1.3078 0.0%100.0%0.0%0-1001020304050607080901001100  

  • 0% Bullish
  • 100% Bearish
  • 0% Sideways

Bias Bearish 1 Month Avg Forecast 1.3153 100.0%88.0%44.0%04050607080901000  

  • 44% Bullish
  • 44% Bearish
  • 11% Sideways

Bias Neutral 1 Quarter Avg Forecast 1.3236 100.0%82.0%55.0%05560657075808590951000  

  • 55% Bullish
  • 27% Bearish
  • 18% Sideways

Bias Bullish

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