USD/CAD reached important support

USD/CAD slid to 1.0912 yesterday approaching the 100-day MA and the bottom of the daily Ichimoku Cloud at 1.0900. Canadian dollar gained on Tuesday as the Bank of Japan maintained monetary stimulus and the loss of separatist party at the Quebec election. CAD strengthened since Friday when Canadian employment posted the biggest jump in 7 months, while the unemployment rate in Canada fell from 7 to 6.9%.

Yesterday, however, Canada released a bunch of weaker-than-expected housing data. USD/CAD recovered today to 1.0942. There’s bullish divergence at H4 MACD.    

Analysts at SEB Bank say that to ease the bearish pressure USD/CAD needs to move above 1.0957 and 1.1002, but also over 1.1078/95 is prerequisite to make believe that the correction lower intraday has passed its lowest point.

Chart. Daily USD/CAD

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