TenkoFX - Analytics

    TenkoFX

    415.75 7.25/10
    68% of positive reviews
    Real

    USD/CAD resume its downslides, drops below 1.2800 handle

    The USD/CAD pair remained well offered and the pair extended its slide further below 1.2800 handle to currently trade near session low level of 1.2770.On Wednesday, the pair recovered sharply from session lows, despite of strong monthly Canadian retail sales data, as lower-than-expected drawdown in US crude oil inventories was seen weighing on crude oil prices and dragging commodities-linked currencies - like the Canadian Dollar.The pair, however, resumed its slide on Thursday as improving investor risk appetite on optimism surrounding today's Brexit vote has spurred a fresh bout of risk-on rally in global financial markets. Meanwhile, investors will remain focused on the final outcome of the crucial UK-EU referendum, expected early UK time on Friday, which would determine the risk sentiment and drive riskier assets - like equities and commodities, including oil. With a high degree of correlation, movement in crude oil derives movement for the Canadian Dollar.Technical levels to watchOn the immediate downside, bulls would make an attempt to defend 1.2750 support, which is closely followed by a short-term ascending trend-line support near 1.2730-25 region. A follow through selling below 1.2730-25 support now seems to force the pair to break through 1.2700 handle and head towards testing its next major support near 1.2650 level.On the flip side, momentum back above 1.2800 handle might continue to confront resistance around 1.2850 area. Only a decisive move back above this strong resistance might negate any near-term bearish bias and assist the pair to surge past 20-day SMA and 1.2900 round figure mark, towards testing 50-day SMA resistance around 1.2930-35 region.


    To leave a comment you must or Join us


    By visiting our website and services, you agree to the conditions of use of cookies. Learn more
    I agree