USD/CAD testing the low-1.1300s

FXStreet (Edinburgh) - The selling interest around the greenback remains alive during the NA session on Wednesday, pushing USD/CAD to challenge the psychological 1.1300 handle.

USD/CAD retreats from multi-year peaks

Spot is coming down after hitting multi-year tops just pips below 1.1400 the figure during the European morning, bolstered by an upbeat tone in the US dollar. Less auspicious results from the US docket badly hurt the pair, dragging it to current levels in the 1.1310/5 area. “The RSI is at 69, so not yet overbought. Being at five-year highs USDCAD resistance levels are mainly psychological; with the next level being 1.1400, followed by 1.1500”, observed Camilla Sutton, Chief FX Strategist at Scotiabank.

USD/CAD levels to watch

At the moment the pair is advancing 0.17% at 1.1316 with the next resistance at 1.1385 (high Oct.15) ahead of the psychological levels at 1.1400 and 1.1500 and then 1.1531 (high Jul.14 2009). On the downside, a breach of 1.1226 (low Oct.15) would expose 1.1190 (low Oct.14) and finally 1.1168 (low Oct.13).