- The dollar moderates the rally and enables a downward correction in the USD / CAD.
- Big Data Ahead: Canada GDP and US ADP Employment
USD / CAD is moving on a bearish bias on Wednesday, and it hit lows for the day at 1.2592. From there it bounced and is trading around 1.2600, shedding 0.25% on the day.
The The pair’s decline comes after having reached a three-week high on Tuesday at 1.2646 and after two days in a row with declines. The factor behind the correction is being a decline in the dollar in the market.
The moderation of the rise in the yields of the Treasury bonds, took strength from the dollar. The focus will remain on the bond market, although important economic data will also be released on Wednesday. In the US, it will be the turn of the ADP private employment report and the pending home sale report. In Canada there will be figures for industrial prices and monthly GDP.
Wall Street futures point to an open with mixed terrain and the price of oil does not register significant variations. An advance in stocks and crude could favor a prolongation of the downward correction in USD / CAD.
A Key support in the pair appears at the 20-day moving average at 1.2560. A close clearly below would point to a consolidation at lower levels. On the upside, the dollar’s resistance to break is the 1.2650 region, which contains the 55-day moving average.
Technical levels
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