6 May 2015
USD/CAD bounces and cuts intraday losses
FXStreet (Córdoba) - USD/CAD reversed course and bounced sharply from 3-month lows as the loonie weakened at some point during American session tracking the pullback in oil prices.
Crude oil lost nearly $2 a barrel dragging the Canadian dollar down with it. USD/CAD turned higher and rose more than 100 pips from a low of 1.1939 to a session high of 1.2044. At time of writing, the pair is trading at 1.2035, still 0.25% down on the day.
On the data front, Canada’s Ivey Purchasing Managers Index was at 58.2 on a seasonally adjusted basis in April, up from 47.9 in March and beating expectations of 49.2. The CAD benefitted initially from strong domestic and poor US data, but failed to sustain gains.
USD/CAD technical levels
In terms of technical levels, immediate resistances are seen at the 1.2081/86 zone (10-day SMA/daily high), 1.2100 (psychological level) and 1.2130 (May 5 high). On the other hand, supports could be found at 1.1939 (daily low) and 1.1900 (psychological level).
Crude oil lost nearly $2 a barrel dragging the Canadian dollar down with it. USD/CAD turned higher and rose more than 100 pips from a low of 1.1939 to a session high of 1.2044. At time of writing, the pair is trading at 1.2035, still 0.25% down on the day.
On the data front, Canada’s Ivey Purchasing Managers Index was at 58.2 on a seasonally adjusted basis in April, up from 47.9 in March and beating expectations of 49.2. The CAD benefitted initially from strong domestic and poor US data, but failed to sustain gains.
USD/CAD technical levels
In terms of technical levels, immediate resistances are seen at the 1.2081/86 zone (10-day SMA/daily high), 1.2100 (psychological level) and 1.2130 (May 5 high). On the other hand, supports could be found at 1.1939 (daily low) and 1.1900 (psychological level).