Forex: USD/CAD retraces back to 1.0200 after PPI in US

FXstreet.com (Barcelona) - The USD/CAD has been climbing higher Wednesday, having broken above the 1.0200 level earlier. Indeed, after peaking at the 1.0221 mark (intraday maximum), the cross has now moved to the 1.0200 region after the publication of economic data in the United States.

Mataf.net analysts point to resistive means for the USD/CAD at 1.0021, onto 1.0256, and 1.0321. Conversely, a break below the 1.0121 handle will initiate support at 1.0056 and 1.0021.

In the United States, the Producer Price Index (YoY) has grown +0.6% in April, against expectations of +0.8%. In addition, the Producer Price Index ex Food & Energy (YoY) has yielded a growth of +1.7% in April, matching a projection of +1.7%. Meanwhile in Canada, Manufacturing Shipments (MoM) came in at -0.3% in March, vs. estimates of +0.6%.

“The USD/CAD rose sharply yesterday confirming the ascending channel indicating the possibility of extending the upside move today and during the upcoming period. Moreover, Linear Regression Indicators tend to be positive now supporting the bullish move.” notes the ICN.com analyst team.