24 Mar 2015
USD/CAD slipping towards 1.2350/75 – TDS
FXStreet (Barcelona) - With USD/CAD slipping below 1.2559 levels, Shaun Osborne, Chief FX Strategist at TD Securities, sees scope for deeper correction in the pair on a break below 1.2365.
Key Quotes
“On the charts, the closing break of the 40-day MA (1.2559) that we suggested yesterday would signal more downside duly emerged yesterday, keeping USDCAD better offered overnight."
“We spot resistance at 1.2550/60 now—likely a strong swing point for the market near-term (USD better offered below, better bid above).”
“Technically, after two big rejections of the low 1.28s in the past few weeks, the loss of support at 1.2365 would signal scope for a deeper correction into the 1.18/1.19 area over the next two months—very much in keeping with the seasonal patterns we have highlighted in recent weeks which foreshadow downside risks for USDCAD through the turn of the quarter.”
Key Quotes
“On the charts, the closing break of the 40-day MA (1.2559) that we suggested yesterday would signal more downside duly emerged yesterday, keeping USDCAD better offered overnight."
“We spot resistance at 1.2550/60 now—likely a strong swing point for the market near-term (USD better offered below, better bid above).”
“Technically, after two big rejections of the low 1.28s in the past few weeks, the loss of support at 1.2365 would signal scope for a deeper correction into the 1.18/1.19 area over the next two months—very much in keeping with the seasonal patterns we have highlighted in recent weeks which foreshadow downside risks for USDCAD through the turn of the quarter.”