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22 May 2014
USD/CAD finds support at 10-day SMA
FXStreet (Córdoba) - The USD/CAD was strongly rejected from the 1.0930 area and fell to fresh daily lows sub-1.0900, with the Loonie underpinned by better risk appetite.
With US stocks trading into the green and oil near 2 ½-month highs around 104.00 a barrel, the USD/CAD came under pressure and dropped to a low of 1.0890 before the 10-day SMA offered support. At time of writing, the USD/CAD is trading at the 1.0900 zone, 0.1% below its opening price.
USD/CAD technical outlook
"USD/CAD has a positive, short-term technical undertone and has sustained the break through trend resistance long enough to suggest that the risk of a big drop back—for the moment, at least, has been reduced”, said the TD Securities analyst team. “But the USD is still struggling to push on through short-term retracement resistance in the low 1.09 area and we really need to see some clear progress here sooner rather than later to get a little more comfortable with the upside potential in USD/CAD".
"Near-term, we look for firm support on dips to the 1.0900/10 area and see major support now at 1.0870/80 on the short-term charts. We still lean bullish on the USD".
With US stocks trading into the green and oil near 2 ½-month highs around 104.00 a barrel, the USD/CAD came under pressure and dropped to a low of 1.0890 before the 10-day SMA offered support. At time of writing, the USD/CAD is trading at the 1.0900 zone, 0.1% below its opening price.
USD/CAD technical outlook
"USD/CAD has a positive, short-term technical undertone and has sustained the break through trend resistance long enough to suggest that the risk of a big drop back—for the moment, at least, has been reduced”, said the TD Securities analyst team. “But the USD is still struggling to push on through short-term retracement resistance in the low 1.09 area and we really need to see some clear progress here sooner rather than later to get a little more comfortable with the upside potential in USD/CAD".
"Near-term, we look for firm support on dips to the 1.0900/10 area and see major support now at 1.0870/80 on the short-term charts. We still lean bullish on the USD".