6 Feb 2014
USD/CAD supported on 1.1060
FXStreet (Guatemala) - USD/CAD is back onto the mid 1.10 supporting zone.
Strategists at TD Securities noted this also and explained that the short-term undertone here is still more consolidative and leaning potentially more bearish. “We have traded in a 1.1040/1.1125 range so far this week which looks like a consolidation ahead of another push lower (bear flag—beak down below 1.1043); on a slightly wider perspective, the late Jan/early Feb price action is also flagging a potential Head & Shoulders top/reversal (neckline at 1.1042, would imply the risk of a drop to the low 1.08s). Intraday gains through 1.1125 will ease the risk of a near-term drop but the market will remain under the threat of a deeper correction unless or until new cycle highs are made”.
USD/CAD Levels
The 20 DMA is 1.1028, the 50 DMA is 1.0798 and the 200 DMA is 1.0470. RSI (14) reads 42.66.
Supports are ascending from 1.0953, 1.0992, 1.1019, 1.1025. Spot is 1.1062 while resistances are1.1138, 1.1174, 1.1225 and 1.1300.
Strategists at TD Securities noted this also and explained that the short-term undertone here is still more consolidative and leaning potentially more bearish. “We have traded in a 1.1040/1.1125 range so far this week which looks like a consolidation ahead of another push lower (bear flag—beak down below 1.1043); on a slightly wider perspective, the late Jan/early Feb price action is also flagging a potential Head & Shoulders top/reversal (neckline at 1.1042, would imply the risk of a drop to the low 1.08s). Intraday gains through 1.1125 will ease the risk of a near-term drop but the market will remain under the threat of a deeper correction unless or until new cycle highs are made”.
USD/CAD Levels
The 20 DMA is 1.1028, the 50 DMA is 1.0798 and the 200 DMA is 1.0470. RSI (14) reads 42.66.
Supports are ascending from 1.0953, 1.0992, 1.1019, 1.1025. Spot is 1.1062 while resistances are1.1138, 1.1174, 1.1225 and 1.1300.