8 Jul 2014
USD/CAD: Buyers comeback at key demand zone
FXStreet (Bali) - The USD/CAD continues to find willing buyers on dips with price action starting to suggest that a potential recover is in the making.
After 4 weeks of constant selling, looks like bids are finally making a comeback, as the USD prints a 2nd consecutive day of gains for the first time since late May this year. The area 1.0650-1.0590 represent an important demand imbalance area as it coincides with the origin of the strong bull run from back on June 6th, and that saw the exchange rate travel over 6 cents north before topping above the 1.12 by mid March. In terms of seasonals, July is the worst month for USD/CAD, something that should add weight to the potential bullish case building short term.
Technically, there are several topside hurdles still to overcome to allow a greater recover. The immediate one is seen at 1.07-1.0690, where a cluster of offers is expected, followed by another stack of sell orders between 1.0710 and 1.0725. On the downside, expect plenty of dip buyers starting at 1.0660 and lower at every 10 pips sequence.
After 4 weeks of constant selling, looks like bids are finally making a comeback, as the USD prints a 2nd consecutive day of gains for the first time since late May this year. The area 1.0650-1.0590 represent an important demand imbalance area as it coincides with the origin of the strong bull run from back on June 6th, and that saw the exchange rate travel over 6 cents north before topping above the 1.12 by mid March. In terms of seasonals, July is the worst month for USD/CAD, something that should add weight to the potential bullish case building short term.
Technically, there are several topside hurdles still to overcome to allow a greater recover. The immediate one is seen at 1.07-1.0690, where a cluster of offers is expected, followed by another stack of sell orders between 1.0710 and 1.0725. On the downside, expect plenty of dip buyers starting at 1.0660 and lower at every 10 pips sequence.