As of this writing the USD/CAD is near the 1.36080 mark which is near short-term highs, but intriguingly remains within sight of yesterday’s early lows in the currency pair. Trading has seen fast but polite price action in the USD/CAD, Wednesday’s low of nearly 1.35400 touched values last seen in late September. Downward price momentum in the USD/CAD has been rather strong since the 16th of November.
However day traders who have been pursuing the USD/CAD likely have plenty of scars left from rather violent reversals which have been experienced the past couple of months as the currency pair has fought its way lower from highs near the 1.39000 vicinity seen on the 1st of November. Resistance for the USD/CAD should be watched around the 1.36150 mark to see if it can hold back upwards momentum which might develop.
Gross Domestic Product Numbers from Canada Today
Canada will present its GDP numbers today and the results will be watched and could factor into the USD/CAD short-term and create sudden volatility. No change in the statistic is expected today as rather lackluster growth/recessionary influences are anticipated to be steady. Last week’s inflation numbers from Canada were weaker than expected and this is a good sign for the nation, and might have helped the USD/CAD track lower.
However as Canadian economic data is considered by traders of the USD/CAD, there is no escaping the fact the currency pair also remains USD centric. It is the expectation the U.S Federal Reserve will sound neutral in two weeks that is also helping create downwards price momentum in the USD/CAD. If Canadian data can help this bearish sentiment that will certainly attract the attention of sellers.
Commodity Prices and the USD/CAD
- The USD/CAD is also affected by the price of commodities. Canada is a large producer of gold and the higher price may help the Canadian Dollar.
- Energy prices which have been tracking near mid-term lows, also seem to have found some price support in recent trading, which may help sentiment for selling the USD/CAD also.
Support levels for the USD/CAD should be monitored near the 1.36000 level. This is an important psychological mark. Yesterday’s lows were not able to be sustained, but if the USD/CAD can penetrate this ratio again and maintain prices below, this would be a signal additional selling sentiment remains within financial institutions and via large players.
Canadian Dollar Short-Term Outlook:
Current Resistance: 1.36270
Current Support: 1.36020
High Target: 1.36670
Low Target: 1.35690
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