Back
18 Feb 2014
USD/CAD keeping to a tight range
FXStreet (Guatemala) - USD/CAD has remained in sideways mode this week, but despite this, the daily chart shows USD/CAD nearing the 40-day MA (1.0927) which was strong support for the market at the start of the year.
Strategists at TD Securities explained that USD/CAD’s drift lower has slowed over the past few days, leaving the market’s sideways shift to put the spot rate in touch with the upper boundary of the corrective channel in place from the late January high above 1.12. “Short-term trend momentum remains geared to the downside and we continue to view the 1.09 area as reachable in the near-term before the broader corrective pattern starts to slow and risk/reward considerations shift towards favouring USD longs. Above 1.0985/95 near- term will be more USD-supportive more immediately and reduce the risk of an extension lower towards 1.09”. The analysts continued and said, “The 40-day MA plus the corrective retracement supports noted on the short-term chart above imply very strong support for funds in the low 1.09 area. We favour looking to buy USD dips against this support zone”.
USD/CAD Levels
The 20 DMA is 1.1066, the 50 DMA is 1.0852 and the 200 DMA is 1.0503. RSI (14) reads 52.60. Supports are ascending from 1.0842, 1.0875, 1.0905, 1.0940
Spot is 1.0964 while resistances are 1.1026, 1.1095, 1.1123 and 1.1138.
Strategists at TD Securities explained that USD/CAD’s drift lower has slowed over the past few days, leaving the market’s sideways shift to put the spot rate in touch with the upper boundary of the corrective channel in place from the late January high above 1.12. “Short-term trend momentum remains geared to the downside and we continue to view the 1.09 area as reachable in the near-term before the broader corrective pattern starts to slow and risk/reward considerations shift towards favouring USD longs. Above 1.0985/95 near- term will be more USD-supportive more immediately and reduce the risk of an extension lower towards 1.09”. The analysts continued and said, “The 40-day MA plus the corrective retracement supports noted on the short-term chart above imply very strong support for funds in the low 1.09 area. We favour looking to buy USD dips against this support zone”.
USD/CAD Levels
The 20 DMA is 1.1066, the 50 DMA is 1.0852 and the 200 DMA is 1.0503. RSI (14) reads 52.60. Supports are ascending from 1.0842, 1.0875, 1.0905, 1.0940
Spot is 1.0964 while resistances are 1.1026, 1.1095, 1.1123 and 1.1138.