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9 Aug 2013
USD/CAD cracks on commodities speculations
FXstreet.com (Chicago) - USD/CAD plunged to 1.0270 zone on commodities speculations largely due to Chinese production data.
Price action indicates the pair failed to hold grounds as it trades at 1.0281, below 1.0300 earlier support. The loonie seems to be highly correlated with commodities prices such as oil as it is the largest producer of crude oil in the world. Earlier in Canada, housing and job market data was weaker than expected with housing starts at 192.9K vs. expected 193.5K. The country also lost 39.4K jobs last month vs. projections at 10.0K and previous -0.4K.
The FXstreet trend index reports the pair as slightly bearish on one-hour timeframe analysis as the price trades below all moving averages (short and long terms) along a MACD indicator pointing down. Supports are aligned at 1.0250, 1.0225 and 1.0199 with resistances at 1.0379, 1.0405 and 1.0431.
Price action indicates the pair failed to hold grounds as it trades at 1.0281, below 1.0300 earlier support. The loonie seems to be highly correlated with commodities prices such as oil as it is the largest producer of crude oil in the world. Earlier in Canada, housing and job market data was weaker than expected with housing starts at 192.9K vs. expected 193.5K. The country also lost 39.4K jobs last month vs. projections at 10.0K and previous -0.4K.
The FXstreet trend index reports the pair as slightly bearish on one-hour timeframe analysis as the price trades below all moving averages (short and long terms) along a MACD indicator pointing down. Supports are aligned at 1.0250, 1.0225 and 1.0199 with resistances at 1.0379, 1.0405 and 1.0431.