29 Jan 2014
USD/CAD bounces off 1.1100
FXstreet.com (Edinburgh) - The USD/CAD managed to rebound from the 1.1100 handle on Wednesday to the current area of 1.1145/50 ahead of the FOMC statement.
USD/CAD off multi-year peaks
The bearish sentiment surrounding the CAD plus the bid context favouring the greenback allowed spot to post highs in the vicinity of 1.1200 the figure, levels last seen in July 2009. According to Shaun Osborne, Chief FX Strategist at TD Securities, “The broader bull trend is intact overall and the short-term chart is potentially bullish—the pattern of trade this week is setting up for a potential inverse H&S continuation signal (approximately 150 ticks of upside potential on a break above the high 1.11s now)…. We spot short-term support now at 1.1090 and favour limited losses and broader gains for the USD. Buy modest dips”.
USD/CAD key levels
At the moment the pair is down 0.06% at 1.1149 facing the immediate support at 1.1031 (low Jan.27) ahead of 1.1000 (10-d MA) and then 1.0942 (low Jan.21). On the upside, a break above 1.1187 (2014 high Jan.29) would target the psychological mark at 1.1200 en route to 1.1226 (high Jul.16 2009).
USD/CAD off multi-year peaks
The bearish sentiment surrounding the CAD plus the bid context favouring the greenback allowed spot to post highs in the vicinity of 1.1200 the figure, levels last seen in July 2009. According to Shaun Osborne, Chief FX Strategist at TD Securities, “The broader bull trend is intact overall and the short-term chart is potentially bullish—the pattern of trade this week is setting up for a potential inverse H&S continuation signal (approximately 150 ticks of upside potential on a break above the high 1.11s now)…. We spot short-term support now at 1.1090 and favour limited losses and broader gains for the USD. Buy modest dips”.
USD/CAD key levels
At the moment the pair is down 0.06% at 1.1149 facing the immediate support at 1.1031 (low Jan.27) ahead of 1.1000 (10-d MA) and then 1.0942 (low Jan.21). On the upside, a break above 1.1187 (2014 high Jan.29) would target the psychological mark at 1.1200 en route to 1.1226 (high Jul.16 2009).