Forex: USD/CAD falls to 7-month low at 0.9800

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Forex: USD/CAD falls to 7-month low at 0.9800

FITITOL--> FXstreet.com (San Francisco) - After falling from 0.9870 and breaking 0.9830 support the USD/CAD has extended declines in the American morning to reach the lowest level since September 19 at 0.9800. The following hours, the USD/CAD has been trading in range between 0.9805 and 0.9815.

Currently the pair is trading at 0.9808, 0.33% below today's opening price action.
BoC's governor speech and the announcement of weaker than expected GDP growth in the US hurt the pair. Mark Carney, governor of the BoC, gave a speech today, saying that although Canada will have a healthy growth rate at least until 2014, there still remain threats in the global economy.

The pair faces resistance at 0.9859 followed by 0.9877 and 0.9904 according to Fxstreet.com pivot points on technical tools. On the downside, there is support at 0.9814, before 0.9787 and 0.9769.

"With no much volume at this time of the day, renewed selling pressure can push the pair near 0.9780, past Septembe r 16th low, and once below, continue towards 0.9720, next strong static support," comments Valeria Bednarik, FXstreet.com analyst.

"Immediate resistance comes at 0.9820, past Wednesday low, yet only steady gains above the key 0.9840 could reverse the bearish tone the pair has. Bias will remain bearish as long as below this last," Bednarik concludes.