USD/CAD off highs, back near 1.3340

Pablo Piovano FXStreet

The upside momentum in the greenback seems everything but abated on Monday, now lifting USD/CAD to fresh daily tops near 1.3360.

USD/CAD attention to US PMI, oil

The pair is now posting gains for the fourth consecutive session after finding quite strong support at last week’s lows in the 1.3000 neighbourhood, always backed by the persistent demand for the buck.

Adding to CAD’s offered bias, crude oil prices are posting smalls so far today, taking the barrel of West Texas Intermediate to the $50.60 region and eroding Friday’s gains.

In the meantime, CAD remains under pressure following recent comments by Governor S.Poloz that the central bank was ‘close to cut rates’ at its meeting last Wednesday. In the same line, CAD speculative net shorts have climbed to the highest level since late March during the week ended on October 18, according to the latest CFTC report.

Data wise, US advanced manufacturing PMI for the current month and the Chicago Fed Activity Index are only due, along with speeches by NY Fed W.Dudley (permanent voter, neutral), St. Louis Fed J.Bullard (voter, neutral), Chicago Fed C.Evans (2017 voter, dovish) and J.Powell (permanent voter, neutral).

In addition, Governor S.Poloz and Senior Deputy Governor C.Wilkins are due to testify before the House of Commons Financial Committee.

USD/CAD significant levels

As of writing the pair is up 0.07% at 1.3346 with the next hurdle at 1.3359 (high Oct.24) ahead of 1.3575 (50% Fibo of the 2016 drop) and finally 1.3839 (61.8% Fibo of the 2016 drop). On the other hand, a breakdown of 1.3200 (20-day sma) would open the door to 1.3148 (200-day sma) and then 1.3002 (low Oct.19).

1 Week
1 Month
1 Quarter

1 Week

Avg Forecast 1.3291

29% Bullish
29% Bearish
43% Sideways

Bias Sideways

1 Month

Avg Forecast 1.3332

36% Bullish
45% Bearish
18% Sideways

Bias Bearish

1 Quarter

Avg Forecast 1.3331

33% Bullish
33% Bearish
33% Sideways

Bias Neutral

Author

Pablo Piovano

FXStreet

Born and bred in Argentina, Pablo has been carrying on with his passion for FX markets and trading since his first college years.

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