How is the USDCAD trading today? Peer in the 14 February USDCAD Technical Outlook as it reveals that the pair holds weaker below 1.26 handle.
14 February, GKFX – The USD/CAD pair held on to its softer tone through the mid-European session but has still managed to hold above the 1.2560-55 immediate support.
The pair continued with its struggle to decisively break through the very important 200-day SMA barrier and has been confined with a broader trading range over the past one week or so, with a combination of diverging forces further contributing to a range-bound price action on Wednesday.
Weaker Oil Prices Help Limit Immediate Sharp Downfall
A subdued US Dollar price action has failed to provide any fresh bullish impetus. The negative factor, to some extent, was negated by a follow-through weakness in crude oil prices, which tends to weigh on the commodity-linked currency – Loonie, and helped limit any immediate deeper losses.
Looking at the broader picture, the pair’s attempted up-move beyond the 1.2600 handle is being sold into but any retracement slide has been finding dip-buying interest ahead of mid-1.2500s. Hence, it would be prudent to wait for a decisive break through the mentioned range before committing to the pair’s next leg of directional move.
US Macro Data Might Provide Required Momentum
Today’s key focus would be on the incoming US macro data – consumer inflation figures and monthly retail sales data, which might provide the required impetus and determine the pair’s next leg of directional move.
14 February USDCAD Technical Outlook
On a sustained break below mid-1.2500s is likely to accelerate the fall back towards challenging the key 1.2500 psychological mark en-route 1.2440 strong horizontal support. On the upside, momentum above the 1.2600 handle might continue to confront fresh supply near the 1.2620 region (200-day SMA), above which a fresh bout of short-covering should pave the way for an extension of the near-term trajectory towards reclaiming the 1.2700 handle.
This article 14 February USDCAD Technical Outlook was written by analysts at GKFX. The information provided herein is for general informational and educational purposes only. It is not intended and should not be construed to constitute advice.
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