- The CAD is amongst the worst performer in the G10 this week, with weakness continuing for a 3rd day after BoC cut interest rate
- Adding to the pressure was the U.S. dollar’s trading near 1-1/2 month highs against a basket of major currencies
- “We’re seeing … some continued pessimistic sentiment toward the Canadian dollar,” said Scott Smith, senior marketanalyst at Cambridge Global Payments in Calgary
- USD/CAD was rangebound today 1.2947/83, with strong resistance by March 2009 high of 1.3065
- Overall bias is bullish, Tenkan line at 1.2809 is pointing north, highlighting the upside momentum
- Canadian June CPI due today should be a non-event, forecast is for a small rise to 1.0% from 0.9%. Core CPI is forecast to have stayed unchanged at 2.2%
Resistance Levels:R3: 1.3066 (2009 High Mar 9)R2: 1.3000 (Psychological Level)R1: 1.2974 (2015 High Jul 17)Support Levels:S1: 1.2905 (Daily Low Jul 16)S2: 1.2900 (Psychological Level)S3: 1.2809 (Tenkan-Sen)
The material has been provided by InstaForex Company – www.instaforex.com