8 Aug 2013
USD/CAD continues the downside
FXstreet.com (Barcelona) - USD/CAD is the worst G-10 performer over the past week and the second-worst performer over the past month in the FX space.
USD/CAD is now trading below the 1.0400 handle again, testing the downside and 1.0390 support zone. Research teams at TD Securities noted that over the past month, commodity prices broadly (as measured by the CRB) are little changed and Canada/US spreads have remained close to the upper end of the trading range in place since the start of the year. “Ordinarily, this would broadly supportive backdrop for the CAD so weakness in the currency suggests that investors are liquidating CAD positions regardless of these variables”.
They continued to say “USD/CAD is consolidating the past week’s gains on the charts today but the broader trend remains bullish in our opinion. The market struck, and reversed forcefully from, an important low at 1.0250 in the past week. This sets the USD up for further gains near-term. Minor resistance in the low 1.04 area is restricting USD gains for now but we look for a push to the mid/upper 1.05 area to occur in the next 2-4 weeks. We expect firm support in the mid/upper 1.03 area from here”.
USD/CAD testing support
USD/CAD is continuing to the downside and the 20 dma reads 1.0350, the 50 dma reads 1.0365 and the 200 dma is 1.0144. RSI (14) reads 41.32. Supports are ascending from 1.0265, 1.0305, 1.0337, 1.0348. Spot is testing 1.0390 support. Resistances are 1.0425 1.0445, 1.0472, 1.0526 and 1.0609.
USD/CAD is now trading below the 1.0400 handle again, testing the downside and 1.0390 support zone. Research teams at TD Securities noted that over the past month, commodity prices broadly (as measured by the CRB) are little changed and Canada/US spreads have remained close to the upper end of the trading range in place since the start of the year. “Ordinarily, this would broadly supportive backdrop for the CAD so weakness in the currency suggests that investors are liquidating CAD positions regardless of these variables”.
They continued to say “USD/CAD is consolidating the past week’s gains on the charts today but the broader trend remains bullish in our opinion. The market struck, and reversed forcefully from, an important low at 1.0250 in the past week. This sets the USD up for further gains near-term. Minor resistance in the low 1.04 area is restricting USD gains for now but we look for a push to the mid/upper 1.05 area to occur in the next 2-4 weeks. We expect firm support in the mid/upper 1.03 area from here”.
USD/CAD testing support
USD/CAD is continuing to the downside and the 20 dma reads 1.0350, the 50 dma reads 1.0365 and the 200 dma is 1.0144. RSI (14) reads 41.32. Supports are ascending from 1.0265, 1.0305, 1.0337, 1.0348. Spot is testing 1.0390 support. Resistances are 1.0425 1.0445, 1.0472, 1.0526 and 1.0609.