28 May 2014
USD/CAD base forming 1.0850 - TD Securities
FXStreet (Guatemala) - Shaun Osbourne, Chief FX Strategist at TD Securities notes to day as being a quiet one for funds and all in all, the price action of the last few days suggests USD/CAD is forming a base around 1.0850.
Key Quotes:
"USD/CAD traded in a 39-point range yesterday, recovering from a low of 1.0836 in the European session on the back of decent US durable goods orders, positive Case-Schiller home prices, and on-consensus consumer confidence. The pair reached the NA's session summit at 1.0875 in the early-afternoon, only to grind lower to a flat close for the day overall."
"Today will in all likelihood be quieter for funds, as there will be no data releases neither side of the border, nor central bank speakers making headlines. Last week's break above the trend line on the daily chart fizzled as USD/CAD touched 1.0940, and yesterday's failure to hold on to gains into the 1.0870 area leaves the pair liable for a retest of the low 1.08 support. But this is unlikely to play out today, given the data void and the seemingly low conviction of market participants to drive the pair either way."
"Tomorrow's Q1 current account data and Friday's Q1 GDP release should make things a bit more interesting ahead of next week's dual employment reports. All in all, the price action of the last few days suggests USD/CAD is forming a base around 1.0850; today’s price action will likely be bounded between support at 1.0838 and resistance at 1.0877."
Key Quotes:
"USD/CAD traded in a 39-point range yesterday, recovering from a low of 1.0836 in the European session on the back of decent US durable goods orders, positive Case-Schiller home prices, and on-consensus consumer confidence. The pair reached the NA's session summit at 1.0875 in the early-afternoon, only to grind lower to a flat close for the day overall."
"Today will in all likelihood be quieter for funds, as there will be no data releases neither side of the border, nor central bank speakers making headlines. Last week's break above the trend line on the daily chart fizzled as USD/CAD touched 1.0940, and yesterday's failure to hold on to gains into the 1.0870 area leaves the pair liable for a retest of the low 1.08 support. But this is unlikely to play out today, given the data void and the seemingly low conviction of market participants to drive the pair either way."
"Tomorrow's Q1 current account data and Friday's Q1 GDP release should make things a bit more interesting ahead of next week's dual employment reports. All in all, the price action of the last few days suggests USD/CAD is forming a base around 1.0850; today’s price action will likely be bounded between support at 1.0838 and resistance at 1.0877."