USD/CAD – Range Trading Continues Close to 1.10

USD/CAD started the trading week where it left off on Friday, as the pair continues to drift in Monday’s North American session, trading just above the 1.10 line. This has been the pair’s trend since mid-April, as the pair hugs the key 1.10 level. On the release front, it’s a very quiet schedule. The sole US release, Pending Home Sales, surged 3.4%, its biggest jump in almost a year. There are no Canadian releases on Monday.

US housing numbers were on the weak side last week, but it was a different story on Monday, as Pending Home Sales soared in March. The key indicator jumped 3.4%, easily beating the estimate of 1.0%. This marked its biggest monthly gain since last May. The indicator has posted mostly declines in recent readings, so the strong gain was welcome news.

Meanwhile, US consumers appear to be content, as the UoM Consumer Sentiment jumped to 84.1 points in March, beating the estimate of 83.2. It marked the indicator’s highest level since June. If the optimism continues and translates into increased consumer spending, this should bode well for the US economy.

 

USD/CAD for Monday, April 28, 2014

Forex Rate Graph 21/1/13

USD/CAD April 28 at 14:20 GMT

USD/CAD 1.1023 H: 1.1039 L: 1.1018

 

USD/CAD Technical

S3 S2 S1 R1 R2 R3
1.0852 1.0906 1.1000 1.1094 1.1177 1.1319

 

  • USD/CAD has edged lower in Monday trading.
  • The key line of 1.10 continues to provide weak support. There is stronger support at 1.0906, which has held firm since early April.
  • 1.1094 is the next resistance line. This is followed by 1.1177.
  • Current range: 1.1000 to 1.1094

Further levels in both directions:

  • Below: 1.1000, 1.0906, 1.0852, 1.0775 and 1.0706
  • Above: 1.1094, 1.1177, 1.1319 and 1.1496

 

OANDA’s Open Positions Ratio

USD/CAD ratio is almost unchanged on Monday. This is reflected in the lack of movement which continues to mark the pair. The ratio is currently split between open long and short positions, indicating a lack of bias as to what direction the pair might take.

The Canadian dollar continues to show little activity, as it trades in the low-1.10 range. USD/CAD is drifting in the North American session.

 

USD/CAD Fundamentals

  • 14:00 US Pending Home Sales. Estimate 1.0%. Actual 3.4%.

*Key releases are highlighted in bold

*All release times are GMT

This article is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Corporation or any of its affiliates, subsidiaries, officers or directors. Leveraged trading is high risk and not suitable for all. You could lose all of your deposited funds.

Kenny Fisher

Kenny Fisher

Currency Analyst at Market Pulse
Kenny Fisher joined OANDA in 2012 as a Currency Analyst. Kenny writes a daily column about current economic and political developments affecting the major currency pairs, with a focus on fundamental analysis. Kenny began his career in forex at Bendix Foreign Exchange in Toronto, where he worked as a Corporate Account Manager for over seven years.