Forex: USD/CAD – Volatile after upbeat US Jobless Claims

on Sep 12, 2013
Listen September Thursday 12th_: Yesterday the USD/CAD initially attempted to rise, reaching a high at 1.0364, but it proved to be a price too far. So the pair fell, reaching a low at 1.0308. The daily candle, which had opened at 1.0352, eventually closed at 1.0309, with the pair registering a loss for the day of 0.43 percent.

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In trading so far today, the USD/CAD has fallen to a low at 1.0304, which is the southern-most point since 16 August. Since though, the quote has been on the ascent.
US Initial Jobless Claims for last week checked in at 13.30 BST today, at 292,000 far better than expectations for 330,000. The positive data didn’t have any significant immediate effect on the pair, with the price jumping just nine pips before rapidly retracing. A much bigger movement happened 15 minutes later though, when the price rose to what remains an intraday high at 1.0335, slightly above today’s first resistance level.

In the hour after that spike, the pair tried but failed to go higher, with a subsequent drop as sharp as the rise seeing the quote currently trading at 1.0317, eight pips above the day’s opening price.
The daily stochastic oscillator has been residing beneath the 20-line since Monday, indicating that the market is in an oversold condition and that a rise may occur soon.
Resistance levels today: 1.0330, 1.0345 and 1.0365.
Support levels: 1.0305/0300, 1.0290 and 1.0280.


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