1 Aug 2013
Flash: CAD crosses illustrate divergent trends – TD Securities
FXstreet.com (New York) - The TD Securities Team analyses the short-term outlook of the USD/CAD and EUR/CAD.
Key quotes
“We continue to think that short-term technical signals are turning more encouraging for USD/CAD. The oversold daily stochastic oscillator is turning higher and is poised to cross back above the 25% threshold, a positive sign. We think there is growing scope for a rebound to the high 1.03 area at least near-term (40-day MA at 1.0367) – bullish above there.”
Meanwhile, “the EUR/CAD has nosed through short-term trend resistance on the daily chart today but we are not convinced that developments confer more strength in the technical outlook for the cross. Firstly, EUR/CAD remains overbought on the daily oscillator signals.
Moreover, “there is little indication of a strong trend unfolding here—trend momentum signals have weakened as the market has moved sideways over the past few weeks. Thirdly, medium-term price signals remain negative, indicating an important top/reversal formed in this market through June. Look for more sideways range trading and resistance in the low 1.37 area for now. The broader bias here remains negative.”
Key quotes
“We continue to think that short-term technical signals are turning more encouraging for USD/CAD. The oversold daily stochastic oscillator is turning higher and is poised to cross back above the 25% threshold, a positive sign. We think there is growing scope for a rebound to the high 1.03 area at least near-term (40-day MA at 1.0367) – bullish above there.”
Meanwhile, “the EUR/CAD has nosed through short-term trend resistance on the daily chart today but we are not convinced that developments confer more strength in the technical outlook for the cross. Firstly, EUR/CAD remains overbought on the daily oscillator signals.
Moreover, “there is little indication of a strong trend unfolding here—trend momentum signals have weakened as the market has moved sideways over the past few weeks. Thirdly, medium-term price signals remain negative, indicating an important top/reversal formed in this market through June. Look for more sideways range trading and resistance in the low 1.37 area for now. The broader bias here remains negative.”