6 Feb 2014
Flash: USD/CAD is holding in a range – TD Securities
FXStreet (Guatemala) - Strategists at TD Securities noted the price action around the USD/CAD.
Key Quotes:
“On the one hand, USD dips to noted technical support just below 1.1050 continues to draw out bargain hunters. On the other, the USD really can’t hold a bid above 1.11 for the moment”.
“The overall undertone here remains consolidative but we are not—yet—convinced that USD/CAD has established a firm base from which the broader uptrend can start to advance again. On the data front today, we are looking for mixed data for the CAD—weaker trade which would be a negative, considering the BoC’s focus on Canada’s lost competitiveness, but better Ivey PMI data (a volatile series but the market may pay attention to a strong rebound from the prior month’s drop back under 50”).
“Technically, we still think the short-term bias is lower—a break under 1.1042 should confirm—for a drop back to the high 1.09s. Resistance is 1.1125 (above here targets 1.12 again)”.
Key Quotes:
“On the one hand, USD dips to noted technical support just below 1.1050 continues to draw out bargain hunters. On the other, the USD really can’t hold a bid above 1.11 for the moment”.
“The overall undertone here remains consolidative but we are not—yet—convinced that USD/CAD has established a firm base from which the broader uptrend can start to advance again. On the data front today, we are looking for mixed data for the CAD—weaker trade which would be a negative, considering the BoC’s focus on Canada’s lost competitiveness, but better Ivey PMI data (a volatile series but the market may pay attention to a strong rebound from the prior month’s drop back under 50”).
“Technically, we still think the short-term bias is lower—a break under 1.1042 should confirm—for a drop back to the high 1.09s. Resistance is 1.1125 (above here targets 1.12 again)”.