23 Jan 2014
USD/CAD supply stalling the USD/CAD
FXstreet.com (Guatemala) - USD/CAD has been on the bid for the best part of the session so far and towards the 1.12 handle, but the pair is facing headwinds and strong resistance here.
Strategists at TD Securities explained that the gains appear to be accelerating again, reflected in the market adopting a steeper attitude of attack after breaking above the January 14-22 trend channel. “We think near- term support will remain firm in the 1.1095 area”. They explained that USD/CAD price action on the daily chart looks a little less impressive at this stage of the session, the USD is trading well off the intraday high and the potential for a negative price signal (“shooting star” reversal) is clear. “We would treat negative price signals with some caution at this point though; the trend is firmly higher and corrections since September have been limited (averaging just 123 ticks for the more significant dips over the past few months). Short-term weakness will represent a medium-term buying opportunity”.
USD/CAD Levels
The 20 DMA is 1.0808, the 50 DMA is 1.0674 and the 200 DMA is 1.0424. RSI (14) reads 59.89. Supports are ascending from 1.0930, 1.0953, 1.0992, 1.1019, Spot is 1.1156 while resistances are 1.1226, 1.1300, 1.1349 and 1.1418.
Strategists at TD Securities explained that the gains appear to be accelerating again, reflected in the market adopting a steeper attitude of attack after breaking above the January 14-22 trend channel. “We think near- term support will remain firm in the 1.1095 area”. They explained that USD/CAD price action on the daily chart looks a little less impressive at this stage of the session, the USD is trading well off the intraday high and the potential for a negative price signal (“shooting star” reversal) is clear. “We would treat negative price signals with some caution at this point though; the trend is firmly higher and corrections since September have been limited (averaging just 123 ticks for the more significant dips over the past few months). Short-term weakness will represent a medium-term buying opportunity”.
USD/CAD Levels
The 20 DMA is 1.0808, the 50 DMA is 1.0674 and the 200 DMA is 1.0424. RSI (14) reads 59.89. Supports are ascending from 1.0930, 1.0953, 1.0992, 1.1019, Spot is 1.1156 while resistances are 1.1226, 1.1300, 1.1349 and 1.1418.