23 Jun 2014
USD/CAD bears giving way to a quick recovery
FXStreet (Guatemala) - Currently, USD/CAD is trading at 1.0732, down -0.23% on the day, having posted a daily high at 1.0764 and low at 1.0716.
USD/CAD spot is in neutral territory according to the hourly FXStreet OB/OS Index, while the FXStreet Trend Index is strongly bearish, despite the current attempt to move away from key support territory.
USD/CAD fundamental movements
USD/CAD was punished heavily post last weeks by stronger than expected Canadian retail sales and CPI data when it was falling to the lowest point seen since the start of the year and below the 200-day MA. Then we had the commodity currencies lifted on the back of the stronger set of surprise HSBC Chinese PMI’s also. Meanwhile Shaun Osbourne, Chief FX Strategist at TD Securities explained, “As the dust settles after the CPI report, this feels a bit like a back to the drawing board moment for us, as long-time CAD bears and we clearly have to lower our sights for the USD/CAD outlook in the near-term at least. The slide back to the low 1.07s in USD/CAD tales back about half of the rally seen from September last year, technically, a better spot for a now oversold USD to start to rally, the USD/CAD bulls in us say…But even if the USD can stabilize in the low 1.07s, near-term gains are liable to remain limited. A quick recovery back through the upper 1.07s would be a plus but gains may not extend that much more than the low 1.08 area for the moment."
USD/CAD Levels
Spot is presently trading at 1.0733, and next resistance can be seen at 1.0743 (Hourly 20 EMA), 1.0749 (Yesterday's Low), 1.0756 (Daily Open), 1.0758 (Monthly Low) and (Weekly Low). Next support to the downside can be found at 1.0729 (Daily Classic S1), 1.0716 (Daily Low), 1.0705 (Weekly Classic S1), 1.0699 (Daily Classic S2) and 1.0653 (Weekly Classic S2).
USD/CAD spot is in neutral territory according to the hourly FXStreet OB/OS Index, while the FXStreet Trend Index is strongly bearish, despite the current attempt to move away from key support territory.
USD/CAD fundamental movements
USD/CAD was punished heavily post last weeks by stronger than expected Canadian retail sales and CPI data when it was falling to the lowest point seen since the start of the year and below the 200-day MA. Then we had the commodity currencies lifted on the back of the stronger set of surprise HSBC Chinese PMI’s also. Meanwhile Shaun Osbourne, Chief FX Strategist at TD Securities explained, “As the dust settles after the CPI report, this feels a bit like a back to the drawing board moment for us, as long-time CAD bears and we clearly have to lower our sights for the USD/CAD outlook in the near-term at least. The slide back to the low 1.07s in USD/CAD tales back about half of the rally seen from September last year, technically, a better spot for a now oversold USD to start to rally, the USD/CAD bulls in us say…But even if the USD can stabilize in the low 1.07s, near-term gains are liable to remain limited. A quick recovery back through the upper 1.07s would be a plus but gains may not extend that much more than the low 1.08 area for the moment."
USD/CAD Levels
Spot is presently trading at 1.0733, and next resistance can be seen at 1.0743 (Hourly 20 EMA), 1.0749 (Yesterday's Low), 1.0756 (Daily Open), 1.0758 (Monthly Low) and (Weekly Low). Next support to the downside can be found at 1.0729 (Daily Classic S1), 1.0716 (Daily Low), 1.0705 (Weekly Classic S1), 1.0699 (Daily Classic S2) and 1.0653 (Weekly Classic S2).