18 Jul 2014
USD/CAD risks are now to the upside
FXStreet (Guatemala) - USD/CAD is trading at 1.0734, down -0.26% on the day, having posted a daily high at 1.0768 and low at 1.0706.
USD/CAD has been a difficult one to call of late, moving generally sideways within a cent range. 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, as noted by analysts at TD Securities. “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”.
USD/CAD Levels
With spot trading at 1.0734, we can see next resistance ahead at 1.0744 (Hourly 100 SMA), 1.0745 (Hourly 20 EMA) and 1.0762 (Weekly High). Support below can be found at 1.0727 (Daily 20 SMA), 1.0724 and 1.0711 (Hourly 200 SMA).
USD/CAD has been a difficult one to call of late, moving generally sideways within a cent range. 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, as noted by analysts at TD Securities. “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”.
USD/CAD Levels
With spot trading at 1.0734, we can see next resistance ahead at 1.0744 (Hourly 100 SMA), 1.0745 (Hourly 20 EMA) and 1.0762 (Weekly High). Support below can be found at 1.0727 (Daily 20 SMA), 1.0724 and 1.0711 (Hourly 200 SMA).