7 Nov 2013
Flash: EUR/CAD sell off – TD Securities
FXstreet.com (London) - Research teams at TD Securities explained EUR/CAD’s sell-off has extended today, easing below the 40-day MA (1.4048) and pressuring trend support in the mid 1.39s.
Key Quotes:
“A lot of technical damage to the EUR/CAD rally has been done in the past couple of weeks—a bearish reversal signal formed last week and soft price action this week tends to “confirm” that signal”.
“There is still some residual, longer-term trend momentum behind the broader rally in the cross, however, so we would really prefer to see the EUR close out the week below support in the mid 1.39s”
“Short-term trend studies have turned bearish, which should limit the EUR’s powers of recovery to the low/mid 1.40s for the moment. Medium-term, the risk of a drop back to the 1.35 area is rising.
Key Quotes:
“A lot of technical damage to the EUR/CAD rally has been done in the past couple of weeks—a bearish reversal signal formed last week and soft price action this week tends to “confirm” that signal”.
“There is still some residual, longer-term trend momentum behind the broader rally in the cross, however, so we would really prefer to see the EUR close out the week below support in the mid 1.39s”
“Short-term trend studies have turned bearish, which should limit the EUR’s powers of recovery to the low/mid 1.40s for the moment. Medium-term, the risk of a drop back to the 1.35 area is rising.