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23 Jun 2015
USD/CAD pops to 2-week highs; but gets a knockout
FXStreet (Barranquilla) - The USD/CAD was shaken by today's US Economic data. First, durable goods orders and Manufacturing PMI launched the pair down to 1.2315 where it found buying interest that sent it to 2-week highs around 1.2380; However, Richmond manufacturing data and home sales capped the rally and put the pair down to current levels.
Awful durable goods orders: -1.8% in May, well below expected and the largest drop since December; April number was revised down to -1.5%. Manufacturing PMI fell to 53.4 in June, below expected and the lowest since October 2013.
Finally, Richmond Manufacturing index rose to 6 in June; double than expected and the highest since January.
Currently, USD/CAD is trading at 1.2327, up 0.14% on the day, having posted a daily high at 1.2384 and low at 1.2308. The hourly FXStreet OB/OS Index is showing overbought conditions, alongside the FXStreet Trend Index which is slightly bullish.
USD/CAD forecast
In a previous report, we commented that despite the USD/CAD is trading at weekly highs, the pair is a short candidate post US GDP data.
In addition, Darren Sinden from Admiral Markets comments that there is a "scope to test back to 200 day EMA at 1.1977 before a bounce."
On the other hand, Richard Perry from Hantec Markets commented in the latest USD/CAD Forecast Poll that "medium term technical signals increasingly rangebound there is a lack of direction and a choppy sideways trading market is continuing."
USD/CAD levels
If the pair manages to extend losses, it will find supports at 1.2315, 1.2300 and 1.2250. To the upside, resistances are at 1.2350 again, 1.2380 and 1.2440.
Awful durable goods orders: -1.8% in May, well below expected and the largest drop since December; April number was revised down to -1.5%. Manufacturing PMI fell to 53.4 in June, below expected and the lowest since October 2013.
Finally, Richmond Manufacturing index rose to 6 in June; double than expected and the highest since January.
Currently, USD/CAD is trading at 1.2327, up 0.14% on the day, having posted a daily high at 1.2384 and low at 1.2308. The hourly FXStreet OB/OS Index is showing overbought conditions, alongside the FXStreet Trend Index which is slightly bullish.
USD/CAD forecast
In a previous report, we commented that despite the USD/CAD is trading at weekly highs, the pair is a short candidate post US GDP data.
In addition, Darren Sinden from Admiral Markets comments that there is a "scope to test back to 200 day EMA at 1.1977 before a bounce."
On the other hand, Richard Perry from Hantec Markets commented in the latest USD/CAD Forecast Poll that "medium term technical signals increasingly rangebound there is a lack of direction and a choppy sideways trading market is continuing."
USD/CAD levels
If the pair manages to extend losses, it will find supports at 1.2315, 1.2300 and 1.2250. To the upside, resistances are at 1.2350 again, 1.2380 and 1.2440.