20 Aug 2013
Flash: USD/CAD enters bullish path – TD Securities
FXstreet.com (New York) - The USD/CAD’s abrupt push through minor resistance on the hourly chart at 1.0370 appears to have petered out for the moment but the USD is not giving back much of the rally, notes the TD Securities Team.
Key quotes
Short-term trend momentum studies are positive (hourly, 6-hour, 12-hour) so the USD is liable to remain relatively well supported intraday while 1.0365/70 holds.”
“While the USD is tracking a modestly firmer course so far today—and while we remain broadly bullish on the USD outlook– we still rather think key short-term resistance remains 1.0425/45 and that the USD is essentially range bound until this level breaks.”
“The USD/CAD price action over a slightly longer-term time frame is positive but not outright bullish, in our opinion. USD/CAD gains have stalled a little above the 40-day MA (1.0390) so far today and we note that while daily trend momentum oscillators are picking up, the signal via the DMI oscillator is not—yet—definitively bullish.”
“This still feels like a range trade for the moment. We remain bullish on the outlook for USD/CAD overall, however, and think the USD appreciation over the past few days should serve to reinforce key support at 1.0290/95. We think USD/CAD losses should remain contained to the low 1.03 now and that modest dips in spot provide a decent buying opportunity against a well defined risk point.”
Key quotes
Short-term trend momentum studies are positive (hourly, 6-hour, 12-hour) so the USD is liable to remain relatively well supported intraday while 1.0365/70 holds.”
“While the USD is tracking a modestly firmer course so far today—and while we remain broadly bullish on the USD outlook– we still rather think key short-term resistance remains 1.0425/45 and that the USD is essentially range bound until this level breaks.”
“The USD/CAD price action over a slightly longer-term time frame is positive but not outright bullish, in our opinion. USD/CAD gains have stalled a little above the 40-day MA (1.0390) so far today and we note that while daily trend momentum oscillators are picking up, the signal via the DMI oscillator is not—yet—definitively bullish.”
“This still feels like a range trade for the moment. We remain bullish on the outlook for USD/CAD overall, however, and think the USD appreciation over the past few days should serve to reinforce key support at 1.0290/95. We think USD/CAD losses should remain contained to the low 1.03 now and that modest dips in spot provide a decent buying opportunity against a well defined risk point.”