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12 Sep 2013
Flash: USD/CAD technical outlook, bolstered by support – TD Securities
FXstreet.com (Lisbon) - “The USD/CAD has caught a bit of a break on the short-term charts, notes the TD Securities Team.
Key quotes
“A push through to the low 1.03 area overnight stalled and price action on the 6-hour chart suggests that a minor low may be in for the market now, with a small, but clear bullish outside range session signaled through early Asian trade today.”
“Gains through minor trend resistance at 1.0312 suggest scope for a modest rebound after what has been a largely one-way trade from the mid/upper 1.05 area. Retracement potential extends to the 1.0365/1.0405 area near-term, we think. Short-term support now 1.0305/10.
“More broadly, the overall trend in USD/CAD retains a soft bias but the sell-off in spot does appear to be slowing in momentum for the moment. Still, a bit more work is needed to lift the USD from here.”
“A modest rebound will not alter the bearish dynamics of this market and so we cannot exclude the risk of a drop back to the low/mid 1.02 area still. Safer ground (neutral) for USD/CAD lies above 1.04 (40-day MA stands at 1.0387 today), bullish above 1.0445/50. Key daily support is 1.0250.”
Key quotes
“A push through to the low 1.03 area overnight stalled and price action on the 6-hour chart suggests that a minor low may be in for the market now, with a small, but clear bullish outside range session signaled through early Asian trade today.”
“Gains through minor trend resistance at 1.0312 suggest scope for a modest rebound after what has been a largely one-way trade from the mid/upper 1.05 area. Retracement potential extends to the 1.0365/1.0405 area near-term, we think. Short-term support now 1.0305/10.
“More broadly, the overall trend in USD/CAD retains a soft bias but the sell-off in spot does appear to be slowing in momentum for the moment. Still, a bit more work is needed to lift the USD from here.”
“A modest rebound will not alter the bearish dynamics of this market and so we cannot exclude the risk of a drop back to the low/mid 1.02 area still. Safer ground (neutral) for USD/CAD lies above 1.04 (40-day MA stands at 1.0387 today), bullish above 1.0445/50. Key daily support is 1.0250.”