25 Jun 2014
USD/CAD retains a weak bias
FXStreet (Guatemala) - Strategists at TD Securities explained that the USD/CAD retains a weak bias on the longer-term charts.
Key Quotes:
“We note that trend momentum is favouring limited rebounds and broader weakness for the moment. We remain a little cautious on haw far the USD sell off can extend for the moment though”.
“The USD has taken back about half of the rally seen since September last year now so the low 1.07 areas might be a natural stopping point—if only temporarily”.
“Also, the move lower is being pinned back in a tighter range”.
“A downward sloping and narrowing range is usually a sign that a move lower is losing dynamism. Slow stochastic oscillator studies are warning that the USD is oversold—though this is not necessarily a sign of a pending reversal we caution; oversold/bought conditions can persist for lengthy periods. But it is a warning”.
“All in, the technical tone looks weak here but there is a chance that the sell off
steadies around 1.07”.
Key Quotes:
“We note that trend momentum is favouring limited rebounds and broader weakness for the moment. We remain a little cautious on haw far the USD sell off can extend for the moment though”.
“The USD has taken back about half of the rally seen since September last year now so the low 1.07 areas might be a natural stopping point—if only temporarily”.
“Also, the move lower is being pinned back in a tighter range”.
“A downward sloping and narrowing range is usually a sign that a move lower is losing dynamism. Slow stochastic oscillator studies are warning that the USD is oversold—though this is not necessarily a sign of a pending reversal we caution; oversold/bought conditions can persist for lengthy periods. But it is a warning”.
“All in, the technical tone looks weak here but there is a chance that the sell off
steadies around 1.07”.