FXStreet (Edinburgh) – The Canadian dollar is surrendering part of the recent strong advance vs. its American counterpart, taking USD/CAD to the 1.3050/45 band.
USD/CAD supported around 1.2900
Spot has been falling uninterruptedly since 11-year tops in the 1.3460 area recorded in late September, as CAD has found strong support in the recovery of crude oil prices and a favourable 2-year CAD-US spread.
Nothing worth mentioning data wise today, with only the US NFIB Business Optimism index surpassing estimates at 96.1 in September and Fed’s Bullard still considering feasible a Fed’s lift-off by year-end.
USD/CAD levels to consider
As of writing, the pair is up 0.46% at 1.3058 with the initial resistance at 1.3095 (Fibo 23.6% of 1.1916-1.3458) followed by 1.3181 (55-day sma) and finally 1.3458 (11-year high Sep.29). On the flip side, a breakdown of 1.2911 (100-day sma) would aim for 1.2900 (low Oct.9) and then 1.2869 (Fibo 38.2% of 1.1916-1.3458).
(Market News Provided by FXstreet)