18 Sep 2013
USD/CAD above 1.0300 as “light-tapering” looms out
FXstreet.com (Athens)- The USD/CAD is trading above 1.0300 in a very quiet trading session for the “loonie”, but ahead critical FOMC minutes and a speech on behalf of BOC Governor Poloz.
USD/CAD trading upwards on “light-tapering” rumors ahead of Poloz, FOMC minutes
After “Septaper” there is new word inside our life ahead of FOMC and regarding the notorious tapering; the “lite-tapering”, meaning a modest, light (or) even no taper happening is probably what the vast majority of investors are mostly betting on. Thus, the American dollar depreciates across the board as it is widely expected that the FOMC will come across with a relatively dovish approach. On the other hand, the market has been more doubtful over the past 2 weeks, so a more hawkish move would give the dollar a decent boost at least, initially. Traders should not forget that at earlier at 14.40 GMT hours, BoC Governor Stephen Poloz will speak on Canadian Economy.
Technical Outlook and Strategic Bias on USD/CAD
Investors should not by any means forget that along with the tapering amount, forward guidance is also a very crucial factor. Shaun Osborne, Chief FX strategist from TD Securities, suggests that “USD/CAD is nudging a little higher and nearing a test of minortrend resistance on the hourly chart at 1.0313. Minor moves appear significant in the context of the very narrow ranges that have prevailed since the early week volatility in the market but the bottom line for us remains that the USD looks oversold on the short-term charts at least and is more likely to trade a little higher than extend lower—all else being equal—from here in the near-term. Above 1.0315 or so, the 1.0335 level figures as the next notable resistance point on the short-term chart; after two rejections of the 1.0280/85 area (now support), a push through 1.0335 would trigger a minor double bottom and target 1.0385.”
USD/CAD trading upwards on “light-tapering” rumors ahead of Poloz, FOMC minutes
After “Septaper” there is new word inside our life ahead of FOMC and regarding the notorious tapering; the “lite-tapering”, meaning a modest, light (or) even no taper happening is probably what the vast majority of investors are mostly betting on. Thus, the American dollar depreciates across the board as it is widely expected that the FOMC will come across with a relatively dovish approach. On the other hand, the market has been more doubtful over the past 2 weeks, so a more hawkish move would give the dollar a decent boost at least, initially. Traders should not forget that at earlier at 14.40 GMT hours, BoC Governor Stephen Poloz will speak on Canadian Economy.
Technical Outlook and Strategic Bias on USD/CAD
Investors should not by any means forget that along with the tapering amount, forward guidance is also a very crucial factor. Shaun Osborne, Chief FX strategist from TD Securities, suggests that “USD/CAD is nudging a little higher and nearing a test of minortrend resistance on the hourly chart at 1.0313. Minor moves appear significant in the context of the very narrow ranges that have prevailed since the early week volatility in the market but the bottom line for us remains that the USD looks oversold on the short-term charts at least and is more likely to trade a little higher than extend lower—all else being equal—from here in the near-term. Above 1.0315 or so, the 1.0335 level figures as the next notable resistance point on the short-term chart; after two rejections of the 1.0280/85 area (now support), a push through 1.0335 would trigger a minor double bottom and target 1.0385.”