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18 Sep 2013
USD/CAD struggles to crawl back above 1.03 zone
FXstreet.com (Chicago) - USD/CAD bounced off from 7-week lows reached yesterday below the 1.0278 zone. The pair prints gradual higher lows but struggles to crawl back above the 1.03 zone.
High expectations
With manufacturing shipments above expectations (1.7% vs. estimates at 0.5%) and Canadian stocks rising for a third consecutive day ahead of the FOMC projections and Fed’s monetary decisions, the pair struggles to gain back the 1.03 zone. Having fallen 0.50% against the loonie this week, the greenback remains under pressure and fails to sustain monthly gains that now print 0.36% losses so far.
USD/CAD Technical Levels
Price action reveals the potential completion of a double top pattern (July 8th highs and September 3rd peaks) with a downward trendline extension dropping to 1.0274 7-week lows. After recovering from the crack, the pair trades below the 1.03 zone at 1.0297 and navigates between the supports aligned at 1.0291 (August 16th lows), 1.0257 (July 30th lows) followed by 1.0224 (June 13th highs) and resistances set at 1.0321 (August 19th lows), 1.0347 (August 20th lows) followed by 1.0377 (September 10th highs).
High expectations
With manufacturing shipments above expectations (1.7% vs. estimates at 0.5%) and Canadian stocks rising for a third consecutive day ahead of the FOMC projections and Fed’s monetary decisions, the pair struggles to gain back the 1.03 zone. Having fallen 0.50% against the loonie this week, the greenback remains under pressure and fails to sustain monthly gains that now print 0.36% losses so far.
USD/CAD Technical Levels
Price action reveals the potential completion of a double top pattern (July 8th highs and September 3rd peaks) with a downward trendline extension dropping to 1.0274 7-week lows. After recovering from the crack, the pair trades below the 1.03 zone at 1.0297 and navigates between the supports aligned at 1.0291 (August 16th lows), 1.0257 (July 30th lows) followed by 1.0224 (June 13th highs) and resistances set at 1.0321 (August 19th lows), 1.0347 (August 20th lows) followed by 1.0377 (September 10th highs).