18 Jul 2014
More USD/CAD range trading expected - TD Securities
FXStreet (Łódź) - The TD Securities Rates, FX and Commodities Research team note that USD/CAD continues to struggle to push above short-term resistance in the upper 1.07 range.
Key quotes
"We had been looking for a push to 1.0766 as a consequence of the move above 1.0695 resistance zone earlier this week and while the USD is lacking the incentive—and momentum—to extend the rally at the moment."
"We think neutral directional momentum at this point suggests more range trading, rather than a renewed turn lower, in USD/CAD from here."
"The daily chart for USD/CAD reflects the strong overhead resistance in funds in the upper 1.07 zone, with trend line resistance off the major cycle high above 1.12 capping gains."
"After five waves down and last week’s strong rejection on the daily and weekly charts of the 1.0600/50 area, however, we still rather think risks are geared towards a push higher."
"Gains should pick up above 1.0810/15 where the 200-day MA and the May/June lows converge."
"We think a rebound to the 1.10 area (at least) is achievable still (1.1027 equals a 61.8% retracement of the 1.1277/1.0622 drop). We remain bullish above 1.06."
Key quotes
"We had been looking for a push to 1.0766 as a consequence of the move above 1.0695 resistance zone earlier this week and while the USD is lacking the incentive—and momentum—to extend the rally at the moment."
"We think neutral directional momentum at this point suggests more range trading, rather than a renewed turn lower, in USD/CAD from here."
"The daily chart for USD/CAD reflects the strong overhead resistance in funds in the upper 1.07 zone, with trend line resistance off the major cycle high above 1.12 capping gains."
"After five waves down and last week’s strong rejection on the daily and weekly charts of the 1.0600/50 area, however, we still rather think risks are geared towards a push higher."
"Gains should pick up above 1.0810/15 where the 200-day MA and the May/June lows converge."
"We think a rebound to the 1.10 area (at least) is achievable still (1.1027 equals a 61.8% retracement of the 1.1277/1.0622 drop). We remain bullish above 1.06."