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23 Jan 2015
USD/CAD pushing against resistance area
FXStreet (Córdoba) - USD/CAD is going through a consolidation phase near recent highs as the pair continues to face tough resistance and attempts to clear the 1.2420/25 area.
The pair rallied sharply and it has reached a 6-year high of 1.2425 so far, as the loonie weakened on the back of the BoC surprise rate cut on Wednesday. However, USD/CAD is having a hard time to rise beyond that level and settled in a range. At time of writing, the pair is trading at the 1.2415 zone, 0.29% above its opening price and 2.82% above its pre-BoC meeting levels.
On the data front, Canada will publish key consumer price index figures and November retail sales data later on the day. Second-tier data is scheduled for the US, including Markit manufacturing PMI and existing home sales.
USD/CAD levels to watch
If USD/CAD breaks decisively above 1.2420, next resistances could be found at 1.2474 (Apr 22 2009 high) and 1.2500 (psychological level). On the flip side, supports are seen at 1.2360 (daily low) and 1.2312 (Jan 22 low).
The pair rallied sharply and it has reached a 6-year high of 1.2425 so far, as the loonie weakened on the back of the BoC surprise rate cut on Wednesday. However, USD/CAD is having a hard time to rise beyond that level and settled in a range. At time of writing, the pair is trading at the 1.2415 zone, 0.29% above its opening price and 2.82% above its pre-BoC meeting levels.
On the data front, Canada will publish key consumer price index figures and November retail sales data later on the day. Second-tier data is scheduled for the US, including Markit manufacturing PMI and existing home sales.
USD/CAD levels to watch
If USD/CAD breaks decisively above 1.2420, next resistances could be found at 1.2474 (Apr 22 2009 high) and 1.2500 (psychological level). On the flip side, supports are seen at 1.2360 (daily low) and 1.2312 (Jan 22 low).