FXStreet (Edinburgh) – After climbing near 1.3160, or session highs, USD/CAD has now returned to the 1.3120 area following the US releases.

USD/CAD trims gains on US results

Spot has surrendered part of the earlier gains after US Factory Orders have surprised investors to the downside during September, contracting 1.0% MoM vs. 0.9% initially estimated although improving from the previous 2.1% drop.

Further results showed the Economic Optimism index tracked by IBD/TIPP coming in at 45.5 vs. 47.5 expected and 47.3 previous.

The selling interest remains around CAD in spite of the rally in crude oil prices, pushing the barrel of WTI above the $47.00 mark, or more than 2%.

USD/CAD levels to consider

As of writing, the pair is advancing 0.22% at 1.3128 with the next resistance at 1.3171 (55-day sma) followed by 1.3217 (38.2% Fibo of 1.3459-1.2827) and then 1.3241 (downtrend from 1.3458). On the other hand, a break below 1.3069 (61.8% Fibo of 1.3459-1.2827) would open the door to 1.3040 (100-day sma) and finally 1.2966 (5-month uptrend).

After climbing near 1.3160, or session highs, USD/CAD has now returned to the 1.3120 area following the US releases…

(Market News Provided by FXstreet)

By FXOpen