17 Jul 2014
USD/CAD a buy on dips ahead of key support
FXStreet (Guatemala) - USD/CAD is trading at 1.0741, down 0.00% on the day, having posted a daily high at 1.0763 and low at 1.0724.
Strategists at TD Securities explained that the USD/CAD’s tumble from the upper 1.07 area yesterday leaves a bit of a dent in the near-term bull view; “Our 1.0766 target has been met and surpassed but yesterday’s failed push up leaves the market looking a little short of legs at the moment. But despite weak that is to say, technically bearish price action (bearish reversal session on the 6-hour chart) that formed around yesterday’s drop, follow-through selling interest has been limited over the last few hours”.
USD/CAD bearishness dwindling
The strategists further explained that the recent price action here mitigates the bearish implications of the signal but does not remove the risk of more downside movement near-term entirely. “New highs in the next 24 hours will be a positive. We prefer looking to buy USD dips while support at 1.0695/00 holds”.
USD/CAD hourly levels
Current price is 1.0741, with resistance ahead at 1.0742 (Daily Open), 1.0745 (Hourly 20 EMA), 1.0754 (Daily Classic PP), 1.0759 (Weekly High) and 1.0763 (Daily High). Next support to the downside can be found at 1.0738 (Hourly 100 SMA), 1.0724 (Daily Low), 1.0723 (Daily 20 SMA), (Yesterday's Low) and 1.0711 (Daily Classic S1).
Strategists at TD Securities explained that the USD/CAD’s tumble from the upper 1.07 area yesterday leaves a bit of a dent in the near-term bull view; “Our 1.0766 target has been met and surpassed but yesterday’s failed push up leaves the market looking a little short of legs at the moment. But despite weak that is to say, technically bearish price action (bearish reversal session on the 6-hour chart) that formed around yesterday’s drop, follow-through selling interest has been limited over the last few hours”.
USD/CAD bearishness dwindling
The strategists further explained that the recent price action here mitigates the bearish implications of the signal but does not remove the risk of more downside movement near-term entirely. “New highs in the next 24 hours will be a positive. We prefer looking to buy USD dips while support at 1.0695/00 holds”.
USD/CAD hourly levels
Current price is 1.0741, with resistance ahead at 1.0742 (Daily Open), 1.0745 (Hourly 20 EMA), 1.0754 (Daily Classic PP), 1.0759 (Weekly High) and 1.0763 (Daily High). Next support to the downside can be found at 1.0738 (Hourly 100 SMA), 1.0724 (Daily Low), 1.0723 (Daily 20 SMA), (Yesterday's Low) and 1.0711 (Daily Classic S1).