24 Jun 2014
USD/CAD looks oversold - TD Securities
FXStreet (Łódź) - The TD Securities team of analysts point out that the USD/CAD was almost unchanged overnight, trading in a very tight range, holding around support in the low 1.07 area.
Key quotes
"USDCAD looks oversold to us but that situation may persist for a while longer as the trend lower remains well entrenched in the market overall."
"We think the 1.07 area should provide some short-term support for the USD at least but the risk of a drop back to the 1.06 area (primary, long-term trend and retracement support) remains."
"If the CAD is going to reverse and lose any ground, a catalyst is needed and, considering the dearth of domestic data until later this week and early the next (April GDP is released on Monday, ahead of the national holiday here) it’s not obvious what that catalyst might be."
"Note BoC Deputy Governor Schembri is speaking at 11.55ET in Charlottetown on June 27th and the speaking engagement may generate some interest given the market’s focus on inflation."
"Intraday, we look for support around the 1.0715/20 area, where the market has based so far this week. Gains may pick up above 1.0745 towards the 1.0780/90 area but may struggle to get much beyond that point for now."
Key quotes
"USDCAD looks oversold to us but that situation may persist for a while longer as the trend lower remains well entrenched in the market overall."
"We think the 1.07 area should provide some short-term support for the USD at least but the risk of a drop back to the 1.06 area (primary, long-term trend and retracement support) remains."
"If the CAD is going to reverse and lose any ground, a catalyst is needed and, considering the dearth of domestic data until later this week and early the next (April GDP is released on Monday, ahead of the national holiday here) it’s not obvious what that catalyst might be."
"Note BoC Deputy Governor Schembri is speaking at 11.55ET in Charlottetown on June 27th and the speaking engagement may generate some interest given the market’s focus on inflation."
"Intraday, we look for support around the 1.0715/20 area, where the market has based so far this week. Gains may pick up above 1.0745 towards the 1.0780/90 area but may struggle to get much beyond that point for now."