10 Jul 2013
Flash: CAD crosses poised for action – TD Securities
FXstreet.com (New York) - The May/June rally in the EUR/CAD has reversed in a significant manner, notes the TD Securities Team.
We take note of the bearish developments on the weekly chart with barely more than a third of the move up from 1.3070 having been retraced so far. “Intraday price action looks soft, with EUR/CAD pressuring the 40-day MA, which is usually a decent bellwether for the cross (more weakness likely on a push below 1.3506, in other words, just a little below the 1.3529 retracement support). We look for a drop back to the 1.33 area – sell rallies.” the team adds.
Meanwhile, “the AUD/CAD is getting a little more traction above trend channel resistance (0.9578) on the daily chart so far today but the AUD still has its work cut out to improve in a significant way, we feel. Medium-term signals remain bearish (1.07 double top triggered at 0.9917, targeting a drop to 0.91) and we consider near-term AUD/CAD gains to be merely corrective as the market unwinds a little more of the sharp sell-off in the market since April.”
We take note of the bearish developments on the weekly chart with barely more than a third of the move up from 1.3070 having been retraced so far. “Intraday price action looks soft, with EUR/CAD pressuring the 40-day MA, which is usually a decent bellwether for the cross (more weakness likely on a push below 1.3506, in other words, just a little below the 1.3529 retracement support). We look for a drop back to the 1.33 area – sell rallies.” the team adds.
Meanwhile, “the AUD/CAD is getting a little more traction above trend channel resistance (0.9578) on the daily chart so far today but the AUD still has its work cut out to improve in a significant way, we feel. Medium-term signals remain bearish (1.07 double top triggered at 0.9917, targeting a drop to 0.91) and we consider near-term AUD/CAD gains to be merely corrective as the market unwinds a little more of the sharp sell-off in the market since April.”