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21 Jun 2013
USD/CAD climbs to resistance after Canadian CPI
FXstreet.com (New York) - The USD/CAD technical pair has broken out of a narrow range during US trading, jolted by the release of Canadian data Friday.
In Canada, the Consumer Price Index (YoY and MoM) has climbed +0.7% in May (missing expectations of +0.9%) and +0.2% in May (vs. projections of +0.4%) respectively. In addition, the Bank of Canada Consumer Price Index Core (MoM) was reported at +0.2% in May, against estimates of +0.3%. Finally, the Bank of Canada Consumer Price Index Core (YoY) has climbed only +1.1% in May, missing a consensus of +1.2%.
USD/CAD strong bullish momentum remains despite dormancy
According to the TD Securities Team, “The USD/CAD has paused on the charts after yesterday’s sharp move up. On the face of it, the trio of doji candles on the 6-hour chart suggests the rally has stalled. We rather think there is strong underlying momentum higher in this market still and look on the sideways range as a consolidation.”
Presently, the USD/CAD is still growing at a rate of +0.33% above its opening Friday, having settled at 1.0428. Mataf.net analysts point to the next short-term resistance at 1.0425, then 1.0468, and eventually 1.0542. Conversely, a break below 1.0308 will trigger supportive measures at 1.0234 and 1.0191.
In Canada, the Consumer Price Index (YoY and MoM) has climbed +0.7% in May (missing expectations of +0.9%) and +0.2% in May (vs. projections of +0.4%) respectively. In addition, the Bank of Canada Consumer Price Index Core (MoM) was reported at +0.2% in May, against estimates of +0.3%. Finally, the Bank of Canada Consumer Price Index Core (YoY) has climbed only +1.1% in May, missing a consensus of +1.2%.
USD/CAD strong bullish momentum remains despite dormancy
According to the TD Securities Team, “The USD/CAD has paused on the charts after yesterday’s sharp move up. On the face of it, the trio of doji candles on the 6-hour chart suggests the rally has stalled. We rather think there is strong underlying momentum higher in this market still and look on the sideways range as a consolidation.”
Presently, the USD/CAD is still growing at a rate of +0.33% above its opening Friday, having settled at 1.0428. Mataf.net analysts point to the next short-term resistance at 1.0425, then 1.0468, and eventually 1.0542. Conversely, a break below 1.0308 will trigger supportive measures at 1.0234 and 1.0191.