11 Jul 2013
Flash: USD/CAD bullish from technical standpoint – TD Securities
FXstreet.com (New York) - According to the TD Securities Team, “We think we can afford to keep leaning on the bullish side of the outlook for USD/CAD from a technical point of view, even if the market seems to be struggling to push on through resistance at 1.06.”
A key feature of the recent trend higher in USD/CAD is how well entrenched the trend in on the daily, weekly and monthly trend strength (DMI) oscillator. This is usually a reliable signal that the market trend is strong, sustainable and subject to only limited corrections – key support is 1.0421 now.
Meanwhile, the EUR/CAD has steadied around the 50% retracement support of the 1.30/1.38 rally. However, “We think the strength of the turn lower in the cross over the past three weeks signals a propensity to correct more of the May/June gains.” the team adds. The market closed below the 40-day MA yesterday, a further short-term strike against the EUR—and remains below there today. We think 1.3520/30 should now provide firm overhead resistance for the cross near-term. We look for the cross to drop back to the 1.33 area.
A key feature of the recent trend higher in USD/CAD is how well entrenched the trend in on the daily, weekly and monthly trend strength (DMI) oscillator. This is usually a reliable signal that the market trend is strong, sustainable and subject to only limited corrections – key support is 1.0421 now.
Meanwhile, the EUR/CAD has steadied around the 50% retracement support of the 1.30/1.38 rally. However, “We think the strength of the turn lower in the cross over the past three weeks signals a propensity to correct more of the May/June gains.” the team adds. The market closed below the 40-day MA yesterday, a further short-term strike against the EUR—and remains below there today. We think 1.3520/30 should now provide firm overhead resistance for the cross near-term. We look for the cross to drop back to the 1.33 area.