USD/CAD: eyes for 1.2860 double top highs and then . . .?
- USD/CAD better bid on a resurgence in the greenback.
- USD/CAD has legs towards 1.2860 double top highs on a break of the 200 hourly SMA.
USD/CAD is tucked in below the 1.28 handle post reaching the aforementioned highs. Currently, USD/CAD is trading at 1.2789, up 0.59% on the day, having posted a daily high at 1.2822 and low at 1.2702.
The loonie has met a strong headwind vs the greenback with USD/CAD bouncing from 1.27 the figure to the aforementioned highs from a drift in early Asia yesterday to a rally from 1.2720 in the European trade to 1.2760 and accelerating from there in NY, busting through the 100 hourly SMA and capped by the 200 hourly SMA at 1.2823.
USD/CAD driven by a comeback in the greenback while WTI consolidates at 2-year highs
- BOC's Poloz: Intention is always to aim for 2% inflation target, our credibility hinges on that
- Fed's Yellen: No comments on policy outlook in prepared remarks
The CAD has been weakening in tandem with most of the G10 currencies in an environment of broad-based USD strength and without anything further in the way of a catalyst, while Central Bankers Poloz and Yellen did not deliver anything market moving in their speeches today, USD/CAD is likely to remain elevated on the divergence of monetary policy while WTI consolidates the two-year highs scored yesterday on optimism around OPEC and the Saudi weekend purge.
- BoC to only raise once in 2018? - Scotiabank
Technically, the loonie is in a bearish trend vs the greenback and a break of the 200 hourly SMA opens a run towards 1.2860 double top highs of 30th Oct and 6th Nov where the market will likely fail. A continuation opens the 1.29 handle and 1.2914. "Gains through 1.2930 will open up the charts for additional USDCAD strength towards 1.31/1.33," argued analysts at Scotiabank. to the downside, support appears limited between 1.2700 and 1.2650, according to the same analysts.
What's next for petro-currencies? - ING