CAD gained against the USD continuing the trend seen in May and June. This boost in the Loonie was largely due to Canadian employment indicators released during the end of last and the beginning of this current week. В Ivey Purchasing Managers Index also helped this gain, which is the highest its been in since 2015.
Canada’s Housing Starts volume was also in influx. The state economy is in such a positive trend in fact that the head of the BoC Stephen Poloz, В stated that the country’s central bank would advocate the restriction of economic В stimulus.
On Wednesday the Bank of Canada hiked the interest rate by 0.25%. This resulted in the gains of the “Loonie” – and caused the USD/CAD pair to lose more than 200 points coming down to 1.2700 by the time markets closed on Wednesday.
There is further potential for the currency pairs’ volatility with the release of macroeconomic statistics; Canada New Housing Price Index (14:30 GMT+2) and USA Initial Jobless Claims (also 14:30 GMT+2).
- Support and resistance
- Support levels USD/CAD: 1.2730, 1.2650, 1.2570, 1.2470.
- Resistance levels USD/CAD: 1.2820, 1.2900, 1.2970.
USD/CHF
The USD seems to be the week’s big loser, with it slipping against most of the pairs it is involved in, including USD/CHF.
The 4-hour chart the trend is forming showing a third wave 3 at the higher level. At the local level the fifth wave v of 3 is starting to show, and that isin itself developing the wave (iii) of v at the lower level. Assuming this is valid, the pair is speculated to fall to 0.9400with the critical level being set at В 0.9695.