FxWirePro: USD/CAD outlook weaker on renewed downside pressure
Tuesday, January 10, 2017 2:54 PM UTC
- The USD/CAD pair declined on Tuesday as oil prices rose and stronger-than-expected domestic housing starts suggested the country's long housing boom may not yet be over.
- Housing starts rose to a seasonally adjusted annual rate of 207,041 units in December from an upwardly revised 187,273 units in November.
- Oil prices steadied on Tuesday after a sharp sell-off as a fall in the dollar triggered a bout of short-covering.
- Short raise around 1.3290 should be viewed as selling opportunities, as the Canadian dollar is stronger against the US dollar in intraday trading.
- The immediate support can be seen at 1.3155, break below this level will expose the pair to next support level at 1.3070.
- Major resistance can be seen at 1.3295, break above this level will expose the pair towards 1.3355 levels.
Resistance Levels
R1: 1.3225 (50% Retracement level)
R2: 1.3295 (61.8% Retracement level)
R3: 1.3355 (Dec 5th high)
Support Levels
S1: 1.3155 (38.2% Retracement level)
S2: 1.3070 (23.6% Retracement level)
S3: 1.3000 (Psychological levels)