- The USD/CAD pair rose on Wednesday as worries about increased U.S.-North Korea tension weighed on the Canadian dollar, offsetting higher oil prices and stronger-than-expected domestic housing data.
- President Donald Trump's warning that North Korea faced "fire and fury," and Pyongyang's threat of possible retaliation, drove investors out of riskier assets and into the yen, Swiss franc, gold and government debt.
- Canadian housing starts rose in July to a seasonally-adjusted annual rate of 222,324 from June's upwardly revised 212,948, data from the Canada Mortgage and Housing Corporation showed. Economists had expected a 205,000 annual rate.
- The ongoing upside is set to continue for this pair as the support level at 1.2600 is likely to act as strong barrier to the bears and push the pair towards higher level.
- The immediate support can be seen at 1.2660, break below this level will expose the pair to next support level at 1.2600.
- Major resistance can be seen at 1.2718, break above this level will expose the pair towards 1.2746 levels.
Resistance Levels
R1: 1.2718 (38.2% Retracement level)
R2: 1.2746 (July 14th high)
R3: 1.2795 (23.6% Retracement level)
Support Levels
S1: 1.2660 (50% Retracement level)
S2: 1.2600 (61.8% Retracement level)
S3: 1.2555 (Aug 4th lows)
FxWirePro launches Absolute Return Managed Program. For more details, visit http://www.fxwirepro.com/invest
