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FxWirePro: USD/CAD uptrend loses steam, remains on bullish path

• USD/CAD dipped on Friday  as upbeat Canadian retail sales  data and higher oil prices offset stronger US dollar.

• Canada retail sales rose 1.1% m/m to C$69.65B in January, driven by stronger motor vehicle and parts sales, according to Statistics Canada.

  • Oil prices jumped nearly $2 in volatile trading as the Iran conflict showed no signs of easing, with the U.S. set to deploy additional troops to the Middle East

• The BoC has held rates at 2.25% since October, with Governor Tiff Macklem saying there is time to assess the Iran war’s impact, but warning persistently high energy prices could trigger rate hikes.

 Money markets lifted bets on a Bank of Canada rate hike, pricing in over a 20% chance next month as the Iran conflict persists and rising oil prices fuel inflation concerns

•  Immediate resistance is located at 1.3759(50%fib), any close above will push the pair towards 1.3798(50%fib ).

• Support is seen at 1.3701(Daily low) and break below could take the pair towards 1.3635 (38.2%fib).

Recommendation: Good to buy   around 1.3720, with stop loss of 1.3650  and target price of 1.3850

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