USD CAD Improved above 1.3000
8/3/2016 12:27:53 PM
FxErvin Fundamental Analyzing: The USD/CAD pair's sharp recoil from 1.3000 psychological mark touched on Tuesday gained additional traction during early European trading session, lifting the pair to 1.3150 neighborhood. Sustaining its high degree of correlation with crude oil prices, the CAD has failed to profit from a broadly weaker USD and was obvious from Tuesday's rapid recovery from 1.3000 handle to move back above 200-day SMA. Moreover, a recovery in the dollar, as measured by the USD index, helped the USD/CAD pair to develop to its move above 200-day SMA. Bullish momentum above 1.3150 is likely to get extended immediately towards 1.3190, above which the pair seems all set to regain 1.3200 handle and head towards testing July fluctuate high persistence near 1.3250 region. On the other hand, 200-day SMA near 1.3080 region becomes instant support to watch for, which if broken seems to drag the pair directly towards 1.3035 intermediate support ahead of the very significant 1.3000 psychological mark strong support.