USD/CAD: beaten down by a dovish Fed – TDS

FXStreet (Barcelona) – According to the FX Strategists at TD Securities, the dovish fed resulted in a USD/CAD break to the downside and technicals suggest a move towards 1.2072 might be expected.

Key Quotes

“The dovish Fed has helped USDCAD break out of its five-day trading range to the downside and spot has traded down to its lowest levels in four weeks. With little on Canada’s data calendar for today, attention will be focused on tomorrow’s CPI and retail sales report to guide direction on a more sustained basis.”

“For today, this leaves USDCAD largely subject to external drivers and flows for today’s session. The 1.2170/1.2205 region provides key pivot zone for the rest of this week. This area has acted as a notable attractor on the charts since mid-April and a sustained break below puts a test of the 23.6% Fibonacci retracement level of the rally off the 14 May low (1.2072) into view.”

According to the FX Strategists at TD Securities, the dovish fed resulted in a USD/CAD break to the downside and technicals suggest a move towards 1.2072 might be expected.

(Market News Provided by FXstreet)