7 Aug 2013
Flash: Stars aligned for medium-term USD/CAD rally – TD Securities
FXstreet.com (New York) - The TD Securities team analyzes the short-term outlook of the USD/CAD and EUR/CAD.
Key quotes
“Weekly price action for the USD/CAD supports the impression of an important low forming from a technical perspective. Last week’s new low, higher high and higher close (relative to the prior week) formed a bullish outside range/key reversal week.”
“With the USD rally occurring around weekly trend support, the basis for a renewed, medium-term rally seems to be in place. A strong net gain this week to serve as confirmation of the reversal would be a plus but is not technically necessary.”
Meanwhile, “the EUR/CAD is testing our patience but the low 1.38 area is holding the rally that developed following last week’s late push through 1.3700/05. We still rather think that the cross looks rich here and we expect the 1.38 area to continue restraining gains in the near-term.”
Key quotes
“Weekly price action for the USD/CAD supports the impression of an important low forming from a technical perspective. Last week’s new low, higher high and higher close (relative to the prior week) formed a bullish outside range/key reversal week.”
“With the USD rally occurring around weekly trend support, the basis for a renewed, medium-term rally seems to be in place. A strong net gain this week to serve as confirmation of the reversal would be a plus but is not technically necessary.”
Meanwhile, “the EUR/CAD is testing our patience but the low 1.38 area is holding the rally that developed following last week’s late push through 1.3700/05. We still rather think that the cross looks rich here and we expect the 1.38 area to continue restraining gains in the near-term.”