26 Mar 2014
USD/CAD dumps to test the 1.11 handle
FXStreet (Guatemala) - USD/CAD had been slowing down on the offer at 1.1160 but has fallen to the handle while traders search for an explanation for the move in the dollar – surely not another hand of fat fingers?
Meanwhile, USD/CAD retains a better offered tone intraday, explained strategists at TD Securities adding that it is marking a likely fifth consecutive day of losses for spot after last week’s push to new cycle highs through 1.12.
USD/CAD only corrective?
The analysts at TD Securities noted that the USD has eased a little more than we expected but the underlying message from their perspective, at least remains the same. “The move lower is corrective and the market will remain well supported on dips. The low 1.11 zone remains firm support for spot. Still, the sell-off may be losing momentum, based on the descending wedge pattern that is developing on the short-term charts (6-hour candle, above). Weak momentum should moderate above 1.1170 while the USD should pick up a little more materially above 1.1200/05”.
USD/CAD Levels
The 20 DMA is 1.1117, the 50 DMA is 1.1076 and the 200 DMA is 1.0617. RSI (14) reads 35.55. Supports are ascending from 1.1025, and 1.1079/00. Spot is 1.1108 while resistances are 1.1120, 1.1154, 1.1183, 1.1211, 1.1246 and 1.1418.
Meanwhile, USD/CAD retains a better offered tone intraday, explained strategists at TD Securities adding that it is marking a likely fifth consecutive day of losses for spot after last week’s push to new cycle highs through 1.12.
USD/CAD only corrective?
The analysts at TD Securities noted that the USD has eased a little more than we expected but the underlying message from their perspective, at least remains the same. “The move lower is corrective and the market will remain well supported on dips. The low 1.11 zone remains firm support for spot. Still, the sell-off may be losing momentum, based on the descending wedge pattern that is developing on the short-term charts (6-hour candle, above). Weak momentum should moderate above 1.1170 while the USD should pick up a little more materially above 1.1200/05”.
USD/CAD Levels
The 20 DMA is 1.1117, the 50 DMA is 1.1076 and the 200 DMA is 1.0617. RSI (14) reads 35.55. Supports are ascending from 1.1025, and 1.1079/00. Spot is 1.1108 while resistances are 1.1120, 1.1154, 1.1183, 1.1211, 1.1246 and 1.1418.