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19 Feb 2014
USD/CAD rallies from 1-mo low to 1-wk high
FXStreet (Córdoba) - The USD/CAD staged an impressive rally Wednesday, rising from 1-month lows near 1.0900 to a high of 1.1065 during the American session.
M&A helping USD/CAD
The Canadian dollar was weighed by domestic wholesale sales that declined by 1.4% in December, following a revised 0.2% fall in the prior month and below expectations of a 0.4% contraction. The was some chatter M&A activity was helping USD/CAD amid news of the USD 2.8 bln sale of Devon Energy natural gas assets in Canada to Canada National Resources.
The USD/CAD has gained more than 150 pips throughout the day and recently hit a 1-week high of 1.1065 before the 20-day SMA offered resistance. At time of writing, the USD/CAD is trading at the 1.1060 area, recording a 1.0% gain on the day.
USD/CAD technical levels
In terms of technical levels, if the USD/CAD breaks decisively above the 1.1060/65 zone, next resistances are seen at 1.1089 (Feb 11 high) and 1.1100 (psychological level). On the flip side, supports could be found at 1.0909 (Feb 19 low), 1.0900 (psychological level) and 1.0857 (Jan 14 low).
M&A helping USD/CAD
The Canadian dollar was weighed by domestic wholesale sales that declined by 1.4% in December, following a revised 0.2% fall in the prior month and below expectations of a 0.4% contraction. The was some chatter M&A activity was helping USD/CAD amid news of the USD 2.8 bln sale of Devon Energy natural gas assets in Canada to Canada National Resources.
The USD/CAD has gained more than 150 pips throughout the day and recently hit a 1-week high of 1.1065 before the 20-day SMA offered resistance. At time of writing, the USD/CAD is trading at the 1.1060 area, recording a 1.0% gain on the day.
USD/CAD technical levels
In terms of technical levels, if the USD/CAD breaks decisively above the 1.1060/65 zone, next resistances are seen at 1.1089 (Feb 11 high) and 1.1100 (psychological level). On the flip side, supports could be found at 1.0909 (Feb 19 low), 1.0900 (psychological level) and 1.0857 (Jan 14 low).