From the FXWW Chatroom: While we have yet to breach key support at 1.2461 the presumption of continued positive data surprises, the strong advance in wholesale trade underpins our view of an above consensus GDP print on Friday, suggests that there is likely to continue to be good interest to sell USD CAD rallies. If we can puncture the ’16 lows at 1.2461 look for the downtrend to extend towards 1.2410/20 and levels last seen in mid’15.
16:51:23
HSBC: Trader: The one way move in USDCAD feels poised to continue today after taking out psychological support at 1.2500 yesterday afternoon. My gut feel is that we are entering short gamma territory and that could accelerate the move lower. Crude is trading on the front foot and with early price action suggesting further Dollar liquidation we should see USDCAD take out the cycle lows at 1.2480/85. This was the low seen back in early 2016 so a break of that level should quickly introduce another big figure. Rallies of more than 20-25 points continue to be heavily sold into. Resistance to the topside should be found at 1.2525/30 and 1.2575.
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