USD/CAD: 1.28/1.29 key area of support

By FXStreet FXStreet (Guatemala) – USD/CAD has popped higher through the 200 SMA on the hourly sticks that resides at 1.2967 currently, targeting 1.3000 and last week’s highs of 1.3080. The pair recovers on the back of WTI slipping to the lower of $46.00. The greenback continues to pair losses across the board leaving the upside vulnerable.

A big week for USD/CAD

It is a big week for Canada and Loonie traders with the BoC, retails sales and CPI’s that all full due. Analysts at Bank or America Merrill Lynch explained, “Near-term growth has been solid after a 1H contraction, but ample slack and persistent headwinds will prevent the BoC from adopting any hawkishness.

The October meeting includes the release of the MPR, where we see the BoC upgrading 3Q 2015 GDP growth to around 3% from 1.5%. But, despite better near-term growth, we don’t expect a notable shift in the tone of the BoC’s policy statement, MPR or press conference, given continued economic headwinds.”

USD/CAD levels

Technically, USD/CAD weakness has targeted the 200 DMA having dropped below the 50 DMA with the 20/50 bearish cross forming in this new cycle. Analysts at TD Securities explained, “A weaker CAD has helped to facilitate …read more

Source:: FX Street