28 Oct 2013
USD/CAD firm on the 40 DMA
FXstreet.com (London) - USD/CAD is trading firmer through the close of the week and solidifying gains through the 40-day MA (1.0351) today.
Research teams explained, “The heavy tone to price action we noted earlier in the week as a potential “selling crescendo” against the 200-day MA turned out to be exactly that, with the USD rallying hard from the 1.03 area immediate afterwards and through to the pivotal mid 1.04 zone today. Intraday, spot looks potentially capped against former trend support-turned-resistance at 1.0457 but the short-term momentum signals are bullishly aligned in the USD’s favour and we expect limited downside from here. The 1.0460/80 area looks to us to be the only thing standing between spot and a return to the high 1.05/low 1.06 zone. The weekly pattern of trade looks encouraging for USD/CAD. The broader trend higher remains respected and the market has posted a strong rejection of key support (40-week/200-day moving averages) this week; a bullish outside range week looks a certainty at this stage. The rising trend suggests incremental pressure on recent resistance in the 1.06 area in the next few weeks. A sustained move above the mid-year high (1.0605) would open up the topside for an extension to 1.07+ fairly quickly".
USD/CAD Levels
The 20 DMA is 1.0345, the 50 DMA is 1.0376 and the 200 DMA is 1.0270. RSI (14) reads 57.01. Supports are ascending from 1.0283, 1.0310, 1.0340, 1.0366 and 1.0437. Spot is currently 1.0472, While 1.0505, 1.0516 and 1.0560.
Research teams explained, “The heavy tone to price action we noted earlier in the week as a potential “selling crescendo” against the 200-day MA turned out to be exactly that, with the USD rallying hard from the 1.03 area immediate afterwards and through to the pivotal mid 1.04 zone today. Intraday, spot looks potentially capped against former trend support-turned-resistance at 1.0457 but the short-term momentum signals are bullishly aligned in the USD’s favour and we expect limited downside from here. The 1.0460/80 area looks to us to be the only thing standing between spot and a return to the high 1.05/low 1.06 zone. The weekly pattern of trade looks encouraging for USD/CAD. The broader trend higher remains respected and the market has posted a strong rejection of key support (40-week/200-day moving averages) this week; a bullish outside range week looks a certainty at this stage. The rising trend suggests incremental pressure on recent resistance in the 1.06 area in the next few weeks. A sustained move above the mid-year high (1.0605) would open up the topside for an extension to 1.07+ fairly quickly".
USD/CAD Levels
The 20 DMA is 1.0345, the 50 DMA is 1.0376 and the 200 DMA is 1.0270. RSI (14) reads 57.01. Supports are ascending from 1.0283, 1.0310, 1.0340, 1.0366 and 1.0437. Spot is currently 1.0472, While 1.0505, 1.0516 and 1.0560.