25 Jun 2014
USD/CAD to turn south? - TD Securities
FXStreet (Guatemala) - Shaun Osbourne, Chief FX Strategist at TD Securities said the market seems poised to push lower again.
Key Quotes
"USD/CAD made modest progress through the overnight markets but a low volume/low volatility session is not inducing a lot of follow through interest and modest gains above minor technical resistance in the 1.0740 area have not yielded any substantial strength in the USD. In fact, the market seems poised to push lower again as our session gets under way."
"There are no data releases from Canada and impetus from this morning’s US data reports may be mixed—disappointment for the USD in the event of a further downward revision to GDP growth (though not that surprising) may be offset by core durable goods data which are expected to make slightly better reading."
"Overall, the market has a very lethargic feel to it—month and quarter end are just around the corner, the World Cup is perhaps dampening volatility even further in what has been a very low volatility environment and central bankers continue to do their best to rob the markets of any sort of trading conviction. All in all, a pretty sad state of affairs from a trading point of view!"
"The short term charts suggests a somewhat heavier tone unfolding for USDCAD as our session gets underway; failure to progress much through the mid 1.07s overnight leaves funds looking technically heavy and prone to a push back to the 1.0720s in our session. We still look for support in the low 1.07 area to provide a little bit of a toe-hold for the market through the close of the week."
"If not, 1.0600/50 is likely to be tested. Key resistance is 1.0815/25."
Key Quotes
"USD/CAD made modest progress through the overnight markets but a low volume/low volatility session is not inducing a lot of follow through interest and modest gains above minor technical resistance in the 1.0740 area have not yielded any substantial strength in the USD. In fact, the market seems poised to push lower again as our session gets under way."
"There are no data releases from Canada and impetus from this morning’s US data reports may be mixed—disappointment for the USD in the event of a further downward revision to GDP growth (though not that surprising) may be offset by core durable goods data which are expected to make slightly better reading."
"Overall, the market has a very lethargic feel to it—month and quarter end are just around the corner, the World Cup is perhaps dampening volatility even further in what has been a very low volatility environment and central bankers continue to do their best to rob the markets of any sort of trading conviction. All in all, a pretty sad state of affairs from a trading point of view!"
"The short term charts suggests a somewhat heavier tone unfolding for USDCAD as our session gets underway; failure to progress much through the mid 1.07s overnight leaves funds looking technically heavy and prone to a push back to the 1.0720s in our session. We still look for support in the low 1.07 area to provide a little bit of a toe-hold for the market through the close of the week."
"If not, 1.0600/50 is likely to be tested. Key resistance is 1.0815/25."