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2 Aug 2013
Flash: USD/CAD constrained by 40-day MA – TD Securities
FXstreet.com (New York) - The USD/CAD’s push through noted resistance at 1.0330 saw USD/CAD push higher, as expected, though the rally has fallen just marginally shy of the target zone in the low 1.04 area we highlighted yesterday, notes the TD Securities Team.
Key quotes
“Price action so far this morning remains whippy and the short-term charts are flashing some warning signs that the USD is at risk of dropping back a little to correct some of the latter week rally at least (outside range signal potentially on the 6-hour chart, above).”
Also, “the daily chart suggests that the 40-day MA (1.0372 today) is curbing gains. Still, we think the broader outlook here is turning more constructive for USD/CAD after the rebound from retracement support at 1.0250 this week amid heavily oversold oscillator signals. Modest dips should be well-supported from here and should be viewed as a USD-buying opportunity.”
Key quotes
“Price action so far this morning remains whippy and the short-term charts are flashing some warning signs that the USD is at risk of dropping back a little to correct some of the latter week rally at least (outside range signal potentially on the 6-hour chart, above).”
Also, “the daily chart suggests that the 40-day MA (1.0372 today) is curbing gains. Still, we think the broader outlook here is turning more constructive for USD/CAD after the rebound from retracement support at 1.0250 this week amid heavily oversold oscillator signals. Modest dips should be well-supported from here and should be viewed as a USD-buying opportunity.”