OctaFX | OctaFX Forex Broker
Open trading account
Back

USD/CAD fades the spike, challenges 1.3000

FXStreet (Edinburgh) - USD/CAD has quickly faded the spike to session tops in the 1.3080 area on Tuesday, dropping nearly 80 pips to test the vicinity of 1.3000 the figure.

USD/CAD weaker on oil recovery

The Canadian dollar has almost fully reverted the initial drop vs. its American counterpart following the strong recovery in crude oil prices, with the barrel of WTI currently reclaiming the $48.00 handle.

In another direction, the greenback – measured by the US Dollar Index – has managed to trim earlier gains and trade at shouting distance from opening levels around the 95.00 mark, while Fed’s Bullard now sees the US economy expanding at a 2.5%-3%, paving the way for further USD strength.

USD/CAD levels to consider

As of writing, the pair is up 0.10% at 1.3011 with the initial resistance at 1.3095 (Fibo 23.6% of 1.1916-1.3458) followed by 1.3181 (55-day sma) and finally 1.3458 (11-year high Sep.29). On the flip side, a breakdown of 1.2911 (100-day sma) would aim for 1.2900 (low Oct.9) and then 1.2869 (Fibo 38.2% of 1.1916-1.3458).

EUR/USD retreats further from 1.14, eyes daily lows

EUR/USD weakened after the beginning of trading in Wall Street and tuned to the downside. Recently it reached 1.5355, the lowest level since the Asian session and is moving toward daily lows.
Read more Previous

More evidence needed to delay Fed liftoff - Rabobank

Philip Marey, Senior US Strategist at Rabobank explains why they have not change their call for the first rate hike by the Federal Reserve (Fed) from December to next year.
Read more Next
Start livechat