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May 9, 2013
Forex: USD/CAD eyes 1.0040 as risk aversion sharpens
FXstreet.com (Barcelona) - The incipient risk aversion is fuelling the USD upside at the moment, lifting the cross from the vicinity of 1.0015 to the current levels just shy of 1.0040 on Thursday and printing fresh session highs at the same time.
“Odds favour another leg higher for CAD on the key crosses in the wake of a likely stronger jobs prints later this week but suspect we may see at least some interim consolidation given how well CAD has travelled against the likes of AUD, NZD and CHF in the last 3 weeks (+5%). USD/CAD a sell into 1.0150 if seen”, recommended Sean Callow, Strategist at Westpac.
At the moment, the cross is up 0.10% at 1.0037 with the next resistance at 1.0059 (high May 8) ahead of 1.0080 (MA10d) and then 1.0083 (high May 7).
On the flip side, a dip beyond 1.0014 (low May 9) would bring 0.9995 (high Feb.5) and finally 0.9971 (low Feb.8).
“Odds favour another leg higher for CAD on the key crosses in the wake of a likely stronger jobs prints later this week but suspect we may see at least some interim consolidation given how well CAD has travelled against the likes of AUD, NZD and CHF in the last 3 weeks (+5%). USD/CAD a sell into 1.0150 if seen”, recommended Sean Callow, Strategist at Westpac.
At the moment, the cross is up 0.10% at 1.0037 with the next resistance at 1.0059 (high May 8) ahead of 1.0080 (MA10d) and then 1.0083 (high May 7).
On the flip side, a dip beyond 1.0014 (low May 9) would bring 0.9995 (high Feb.5) and finally 0.9971 (low Feb.8).