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28 Jan 2015
USD/CAD challenges highs near 1.2460
FXStreet (Edinburgh) - The sentiment around the US dollar remains unchanged on Wednesday, now pushing USD/CAD to test the upper band of the range near 1.2450/60.
USD/CAD bullishness intact
The pair continues to consolidate the recent upside to fresh multi-year peaks in the 1.2500 neighbourhood, sustained by the ongoing USD rally and the intensified offered tone post-BoC rate cut last week. In light of the FOMC gathering due later, and if consensus of a dovish statement materializes, spot could well see today’s upside eroded although such a reaction should be temporary, and might constitute a good buying opportunity.
On the technical frame, strategists at TD Securities argued, “After the rapid appreciation in the USD seen through December and mid-January, the slow-down in gains and negative price action clearly hint at the risk of a reversal in the USD trend in the short run—or at least some sort of consolidation”.
USD/CAD significant levels
At the moment the pair is advancing 0.36% at 1.2448 with the initial barrier at 1.2502 (2015 high Jan.27) ahead of 1.2507 (high Apr.21 2009) and then 1.2600 (psychological level). On the downside, a breach of 1.2390 (low Jan.28) would aim for 1.2379 (low Jan.27) and finally 1.2360 (low Jan.23).
USD/CAD bullishness intact
The pair continues to consolidate the recent upside to fresh multi-year peaks in the 1.2500 neighbourhood, sustained by the ongoing USD rally and the intensified offered tone post-BoC rate cut last week. In light of the FOMC gathering due later, and if consensus of a dovish statement materializes, spot could well see today’s upside eroded although such a reaction should be temporary, and might constitute a good buying opportunity.
On the technical frame, strategists at TD Securities argued, “After the rapid appreciation in the USD seen through December and mid-January, the slow-down in gains and negative price action clearly hint at the risk of a reversal in the USD trend in the short run—or at least some sort of consolidation”.
USD/CAD significant levels
At the moment the pair is advancing 0.36% at 1.2448 with the initial barrier at 1.2502 (2015 high Jan.27) ahead of 1.2507 (high Apr.21 2009) and then 1.2600 (psychological level). On the downside, a breach of 1.2390 (low Jan.28) would aim for 1.2379 (low Jan.27) and finally 1.2360 (low Jan.23).