17 Jun 2014
USD/CAD retreats from midday high
FXStreet (London) - USD/CAD climbed to post a high at 1.0875, off the back of dollar strengthening, but the pair has since declined to 1.0863 after meeting resistance at an hourly downtrend line dating back to June 11th.
US data has been better than expected, with YoY CPI bettering expectations at 2.1%/2% and MoM 0.4%/0.2%. CPI ex Food and Energy was also better than expectations too. However, moving to housing data, both Housing Starts and Building permits missed forecasts and declined on previous. Ahead the North American docket is finished for the day and attention will shift tomorrows FOMC meet.
USD/CAD Technicals
We can see that on a 4H chart, the 50 SMA to cross below the 200,which is positioned at 1.0883, 20 pips above price action. Despite the recent decline, spot has been in an uptrend since the Asia open where it posted its daily low at 1.0846.
The hourly FXStreet OB/OS Index is showing overbought conditions, alongside the FXStreet Trend Index that is slightly bullish. Further, on a daily chart we can see that RSI is at 39.61, ranging in neutral territory. Looking to volatility bandwidth, on a hourly chart we can see it at 25 pips and expanding, following the daily trend which is at 123 pips and expanding.
Currently we can see resistance ahead at 1.0875 (Daily Classic R1), 1.0876 (Daily High), 1.0879 (Weekly Classic PP), 1.0884 (Yesterday's High) and 1.0887 (Daily 20 SMA). Next support to the downside can be found at 1.0860 (Hourly 100 SMA), 1.0856 (Hourly 20 EMA), 1.0854 (Daily Classic PP), 1.0845 (Weekly Low) and 1.0844 (Daily Open).
US data has been better than expected, with YoY CPI bettering expectations at 2.1%/2% and MoM 0.4%/0.2%. CPI ex Food and Energy was also better than expectations too. However, moving to housing data, both Housing Starts and Building permits missed forecasts and declined on previous. Ahead the North American docket is finished for the day and attention will shift tomorrows FOMC meet.
USD/CAD Technicals
We can see that on a 4H chart, the 50 SMA to cross below the 200,which is positioned at 1.0883, 20 pips above price action. Despite the recent decline, spot has been in an uptrend since the Asia open where it posted its daily low at 1.0846.
The hourly FXStreet OB/OS Index is showing overbought conditions, alongside the FXStreet Trend Index that is slightly bullish. Further, on a daily chart we can see that RSI is at 39.61, ranging in neutral territory. Looking to volatility bandwidth, on a hourly chart we can see it at 25 pips and expanding, following the daily trend which is at 123 pips and expanding.
Currently we can see resistance ahead at 1.0875 (Daily Classic R1), 1.0876 (Daily High), 1.0879 (Weekly Classic PP), 1.0884 (Yesterday's High) and 1.0887 (Daily 20 SMA). Next support to the downside can be found at 1.0860 (Hourly 100 SMA), 1.0856 (Hourly 20 EMA), 1.0854 (Daily Classic PP), 1.0845 (Weekly Low) and 1.0844 (Daily Open).