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16 Dec 2013
USD/CAD quiet ahead of the storm?
FXstreet.com (London) - FXstreet.com (London) - USD/CAD has started the week with a bearish bias although has kept to a tight range between 1.0598 the high and 1.0572 the low. This week will however pan out to eventful with the FOMC being the highlight.
Strategists at Bank of America Merrill Lynch said “The December FOMC meeting will be busy, in addition to the usual statement, the FOMC will also update its Summary of Economic Projections (SEP) and Chairman Bernanke will give his final press conference. And there will be lots of things to talk about: tapering, forward guidance, and the "dot plot" of year-end rate forecasts among these”.
USD/CAD price action
Strategists at TD Securities said, “USD/CAD trade has turned a little choppy on the short-term charts. The rally in spot last Thursday signaled to us a break from the late November/early December consolidation (wedge), with the market having bottomed out right around the 50% retracement support of the 1.04/1.07 rally. While the implications of the wedge are clearly bullish—calling for a repeat of the 400 tick or so rally from the break out point (1.0590) in relatively quick order—the rebound has struggled to gain momentum.
USD/CAD Levels
The 20 DMA is 1.0578, the 50 DMA is 1.0474 and the 200 DMA is 1.0345. RSI (14) reads 49.24. Supports are ascending from 1.0464, 1.0485, 1.0516 and 1.0552. Spot is 1.0580 while resistances are 1.0671, 1.0708, 1.0754 and 1.0804.
Strategists at Bank of America Merrill Lynch said “The December FOMC meeting will be busy, in addition to the usual statement, the FOMC will also update its Summary of Economic Projections (SEP) and Chairman Bernanke will give his final press conference. And there will be lots of things to talk about: tapering, forward guidance, and the "dot plot" of year-end rate forecasts among these”.
USD/CAD price action
Strategists at TD Securities said, “USD/CAD trade has turned a little choppy on the short-term charts. The rally in spot last Thursday signaled to us a break from the late November/early December consolidation (wedge), with the market having bottomed out right around the 50% retracement support of the 1.04/1.07 rally. While the implications of the wedge are clearly bullish—calling for a repeat of the 400 tick or so rally from the break out point (1.0590) in relatively quick order—the rebound has struggled to gain momentum.
USD/CAD Levels
The 20 DMA is 1.0578, the 50 DMA is 1.0474 and the 200 DMA is 1.0345. RSI (14) reads 49.24. Supports are ascending from 1.0464, 1.0485, 1.0516 and 1.0552. Spot is 1.0580 while resistances are 1.0671, 1.0708, 1.0754 and 1.0804.