COZfx: USD/CAD trims gains but remains supported in early trade

[kiriss5678]

COZforex: The US dollar trimmed gains against its Canadian counterpart on Tuesday, but remained supported as persistant concerns over global economic growth continued to support safe-haven demand.

USD/CAD pulled away from 1.1258, the pair's highest since October 6, to hit 1.1228 during early U.S. trade, still up 0.27%. COZforex senior currency strategist Ian • Quigley said, USD/CAD is predicted to find support at 1.1180, and a drop through could take it to the next support line of 1.1161. Meanwhile, the pair is predicted to find its first resistance at 1.1219, and a rise through could take it to the next resistance line of 1.1239.

The greenback remained broadly supported after the International Monetary Fund cut its forecasts for global growth in 2014 and 2015 last week and warned that global growth may never reach its pre-crisis levels ever again.

Adding to investors' concerns, data on Tuesday showed that German economic sentiment deteriorated to the lowest level since December 2012 in October.

The ZEW Centre for Economic Research said that its index of German economic sentiment fell by 10.5 points to minus 3.6 this month from September’s reading of 6.9.

A separate report showed that industrial production in the euro zone dropped 1.8% in August, confounding expectations for a 1.6% decline.

Markets were also jittery amid the widening Ebola epidemic. The UK announced on Monday that it will begin conducting fever tests for Ebola at Heathrow airport, after Health Secretary Jeremy Hunt said it is likely that the virus will be diagnosed in the UK by end of year.

(COZ forex UK)

[orni308]

The pair has been down, but there enogh support at this level for the pair, due to which there are chances of it going higher.