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15 Jul 2013
USD/CAD unable to sustain gains above 1.0400
FXstreet.com (New York) - The USD/CAD foreign exchange rate broke above the 1.0400 barrier during US trading, eventually easing back towards the region amidst a failed breakout attempt.
Earlier today in the United States, Retail Sales (MoM) came in at +0.4% in June, missing expectations of +0.8%. Moreover, Retail Sales - ex Autos (MoM) netted no change in June, against estimates of +0.4%. Meanwhile, Business Inventories (May) rose +0.1%, exceeding projections that called for no change.
In these moments, the USD/CAD is operating at 1.0406, up a healthy +0.24% Monday. A short-term rise in the USD/CAD will first need to test resistances at 1.0472, onto 1.0526, and 1.0550, notes the Danske Research Team.
USD/CAD strategic bias
According to the TD Securities Team, “The USD/CAD has recovered some ground from last week’s dip to the 1.0325/30 area. However, the move up has been a grind and this morning’s failure to push back through the 1.0420/25 area – the late May peak and former support – so far suggests that the market is still carrying a fair bit of drag behind it after last week’s sharp fall. We continue to lean more bullishly on the USD broadly and USD/CAD specifically.”
Earlier today in the United States, Retail Sales (MoM) came in at +0.4% in June, missing expectations of +0.8%. Moreover, Retail Sales - ex Autos (MoM) netted no change in June, against estimates of +0.4%. Meanwhile, Business Inventories (May) rose +0.1%, exceeding projections that called for no change.
In these moments, the USD/CAD is operating at 1.0406, up a healthy +0.24% Monday. A short-term rise in the USD/CAD will first need to test resistances at 1.0472, onto 1.0526, and 1.0550, notes the Danske Research Team.
USD/CAD strategic bias
According to the TD Securities Team, “The USD/CAD has recovered some ground from last week’s dip to the 1.0325/30 area. However, the move up has been a grind and this morning’s failure to push back through the 1.0420/25 area – the late May peak and former support – so far suggests that the market is still carrying a fair bit of drag behind it after last week’s sharp fall. We continue to lean more bullishly on the USD broadly and USD/CAD specifically.”