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2 Apr 2015
USD/CAD drops below 1.26
FXStreet (Mumbai) - The recovery in the crude prices from the daily lows, coupled with the decline in the Canadian trade deficit pushed the USD/CAD pair below 1.26 levels.
Rejected at 5-DMA
The pair failed to sustain gains above its 5-DMA located at 1.2632 as Crude prices in the US, which were down 3% at one point, recovered losses to trade above their 50-DMA at USD 49.40/barrel. Meanwhile, the drop in the Canada’s trade deficit also helped the CAD.
Meanwhile, the markets ignored the drop in the US Trade deficit as it was largely driven by a dispute at West coast ports, which blocked imports from China and Japan. Consequently, the pair extended the drop to its 50-DMA located at 1.2564.
USD/CAD Technical Levels
The pair now trades at 1.2571; down 0.40% for the day. The immediate support is seen at 49.40 (50-DMA), under which losses could be extended to 1.25. On the flip side, a rise above 1.2630 (5-DMA), could see the pair re-test the daily high at 1.2654 levels.
Rejected at 5-DMA
The pair failed to sustain gains above its 5-DMA located at 1.2632 as Crude prices in the US, which were down 3% at one point, recovered losses to trade above their 50-DMA at USD 49.40/barrel. Meanwhile, the drop in the Canada’s trade deficit also helped the CAD.
Meanwhile, the markets ignored the drop in the US Trade deficit as it was largely driven by a dispute at West coast ports, which blocked imports from China and Japan. Consequently, the pair extended the drop to its 50-DMA located at 1.2564.
USD/CAD Technical Levels
The pair now trades at 1.2571; down 0.40% for the day. The immediate support is seen at 49.40 (50-DMA), under which losses could be extended to 1.25. On the flip side, a rise above 1.2630 (5-DMA), could see the pair re-test the daily high at 1.2654 levels.