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Forex: USD/CAD finds support at 1.0040

FXstreet.com (Barcelona) - Better sentiment around the risk appetite plus renewed strength in the Canadian dollar have dragged the cross to fresh intraday lows in the boundaries of 1.0040 on Tuesday, although rebounding afterwards to the current 1.0050/55 region.

In the opinion of Strategist Jane Foley at Rabobank, the recent positive result from the Canadian GDP amidst another not-so-good domestic prints and the deceleration of the US growth would pose potential weaker fundamentals for the Canadian economy near-term. “As a consequence, USD/CAD may find it hard to maintain downside momentum and parity is likely to offer decent support. We expect a more consolidation tone to emerge in USD/CAD near-term”, concluded the expert.

The cross is now losing 0.11% at 1.0056 and a breach of 1.0017 (61.8% of 0.9815-1.0343) would clear the way to 0.9995 (high Feb.5&7) and then 0.9971 (low Feb.8).
On the flip side, resistance levels line up at 1.0083 (high May 7) ahead of the psychological level at 100.00 and finally 1.0214 (high Apr.26).

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