22 Oct 2013
USD/CAD offers a soft bias
FXstreet.com (London) - USD/CAD retains a soft bias intraday and is testing hourly support at 1.0287 at writing.
Research teams at TD Securities (TDS) said, “Short-term trend momentum is bearish but the trends are not well-reflected at all in the longer-term studies. While we can (have to) allow for scope for further softness in funds near-term, we rather think weakness will remain contained and, absent a stronger directional bias on the longer-term charts, prone to corrections. Intraday, we spot resistance at 1.0305/10 now.
USD under pressure
The USD remains under pressure on the daily chart. TDS said, “A potential outside range day lower (contingent on a lower close) on the daily chart today underscores the heavy tone of price action today but the bearish relevance is questionable at this stage of the cycle (and might reflect a selling crescendo nearing from a contrarian perspective)”.
USD/CAD seeking a strong
Alternatively, a higher close on the day would be strongly bullish. The TDS teams said, “We still think the mid/upper 1.02 area provides a firm base for funds in the short-term (200-day MA at 1.0263) near-term and we continue to favour buying dips”.
Research teams at TD Securities (TDS) said, “Short-term trend momentum is bearish but the trends are not well-reflected at all in the longer-term studies. While we can (have to) allow for scope for further softness in funds near-term, we rather think weakness will remain contained and, absent a stronger directional bias on the longer-term charts, prone to corrections. Intraday, we spot resistance at 1.0305/10 now.
USD under pressure
The USD remains under pressure on the daily chart. TDS said, “A potential outside range day lower (contingent on a lower close) on the daily chart today underscores the heavy tone of price action today but the bearish relevance is questionable at this stage of the cycle (and might reflect a selling crescendo nearing from a contrarian perspective)”.
USD/CAD seeking a strong
Alternatively, a higher close on the day would be strongly bullish. The TDS teams said, “We still think the mid/upper 1.02 area provides a firm base for funds in the short-term (200-day MA at 1.0263) near-term and we continue to favour buying dips”.