Forex: USD/CAD plunges on upbeat Canadian data

The recovering USD/CAD was stonewalled during American trading Wednesday, as the pair nosedived 42 pips off its session high (0.9990) to trade presently at 0.9967/68 in these moments. In the aftermath of some upbeat Canadian data, the CAD has made a valiant push though the pair still is trading positively.

In Canada, the Ivey Purchasing Managers Index (January) came in at 54.8, relative to a figure of 43.1 in the previous month. Moreover, the Ivey Purchasing Managers Index s.a. has reported a result of 58.9 in January, against consensus expectations of 53.6.

“Despite the weak movement, the USD/CAD managed to hold above the 50% correction in the hourly charts and above the 0.9965 region, which is considered an intraday interval. This weak movement pushed the RSI to the upside toward 50 again, and as such we hold on to our intraday positive expectations for today.” reiterates the ICN.com Analyst Team.

At the time of writing the USD/CAD is still securing an advance of +0.14% on the day. ICN.com analysts point to resistive means at 0.9980, 1.0005, and 1.0040. Conversely, a break below the 0.9940 support will result in the testing of additional measures of correction at 0.9920 and 0.9895.