The Canadian dollar continues to depreciate vs. its fellow neighbour on Monday, lifting the USD/CAD to challenge session highs near 1.0670.
The pair seems to have found decent support in the proximity of 1.0640 so far, recovering ground lost after hitting multi-year highs beyond the 1.0700 handle last week. Today’s Canandian data showed Housing Starts coming in short of expectations in November, adding to the selling momentum around the CAD. “From here we think near-term downside risks are limited and that dips back to a 1.05 handle are likely to be snapped up by bargain hunters. The USD/CAD rally should resume in the New Year. We look for good support in the 1.0525/75 range”, suggested strategists at TD Securities.
The pair is now up 0.05% at 1.0663 with the immediate resistance at 1.0708 (2013 high Dec.6) followed by 1.0707 (high Dec.4) and then 1.0745 (high May 26 2010). On the downside, a break below 1.0622 (low Dec.6) would open the door to 1.0616 (MA10d) and finally 1.0610 (low Dec.2).