27 Jun 2014
USD/CAD: Break below 1.07 allows 1.0630/10 - SocGen
FXStreet (Bali) - According to Stéphanie Aymes and Tanmay Purohit, FX Technical Analysts at Societe Generale, the break below 1.07 in USD/CAD should allow 1.0630/10 now.
Key Quotes
"USD/CAD is undergoing an intermediate correction after testing the upper limit of a multi-year channel in March, and looks to be in the fourth wave of a five wave (Elliot) up move. The pair is testing an immediate support at 1.0730/1.07, which happens to be the 50% retracement from the September 2013 lows and the lower limit of a descending channel. Weekly RSI is testing a multi-year trend-line, indicating 1.0730/1.07 should cushion the immediate downside. Only a break below will trigger further retracement to 1.0630/10, which coincides with a projection for wave c and a 38.2% retracement from the September 2012 lows."
Key Quotes
"USD/CAD is undergoing an intermediate correction after testing the upper limit of a multi-year channel in March, and looks to be in the fourth wave of a five wave (Elliot) up move. The pair is testing an immediate support at 1.0730/1.07, which happens to be the 50% retracement from the September 2013 lows and the lower limit of a descending channel. Weekly RSI is testing a multi-year trend-line, indicating 1.0730/1.07 should cushion the immediate downside. Only a break below will trigger further retracement to 1.0630/10, which coincides with a projection for wave c and a 38.2% retracement from the September 2012 lows."