USD / CAD – The Key 0.9950 Level Emerges Again
For the most part since the beginning of June, the Canadian dollar has experienced a very strong move from 1.045 down below 0.9650. At the end of August, the Canadian dollar was finding strong support at 0.9850 and in doing so established a short and narrow trading range between 0.9850 and 0.9950 for several weeks. For the most part since, the Canadian dollar has remained below the key 0.9850 level.
At the beginning of September, the Canadian dollar broke through the 0.9850 level and continued lower to trade down at levels not seen for 12 months around 0.9650. Since the middle of September, the Canadian dollar has reversed strongly and moved back to 0.9950 and to levels not seen since early August. It did sit below 0.9850 for several weeks trying to push higher, and as expected this level provided stiff resistance. In the last couple of weeks, the Canadian dollar has pushed off the support level at 0.9750 and moved back towards 0.9850 and then more recently 0.9950. This level has now re-emerged as a significant one as it has met stiff resistance there for the last week. This price action only serves to reinforce the significance of the 0.9950 level and the difficulty it will have moving through there. (Daily chart below)
|Oct 25 at 01:00 GMT|
|0.9940/42||H: 0.9958||L: 0.9889|
- During the early hours of the Asian trading session on Thursday, the Canadian dollar has pushed up a little towards the present resistance level at 0.9950.
- For several weeks, the 0.9850 level was being a solid support level and now reverted to being one of significance causing reasonable resistance. Within the last week, this level has been clearly broken.
- Current range: trading just below 0.9950.
Further levels in both directions:
- Below: 0.9850, 0.9750, and 0.9650.
- Above: 0.9950 and 1.0000.
- EU 8:00 (GMT) M3 Money Supply (sa) (Sep)
- UK 8:30 (GMT) GDP (1st Est.) (Q3)
- UK 8:30 (GMT) Index of Services (Aug)
- US 12:30 (GMT) Durable goods orders (Sep)
- US 12:30 (GMT) Initial Claims (19/10/2012)
- US 14:00 (GMT) BoC Monetary Policy Report released follwed by press conference
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