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13 Jun 2013
USD/CAD consolidating around 1.0170
FXstreet.com (Edinburgh) - The USD/CAD is transiting the area around 1.0170 on Thursday, practically ignoring the better data from the US retail sales and jobs reports.
USD/CAD cautious on Fed’s tapering
Extreme positioning continues to weight on the greenback although its impact has somehow attenuated throughout the week, while the omnipresent rumours on the Fed and the timing of its modification of the QE would surely pick up pace again soon. “Short-term trend momentum (as reflected in the 6-hour DMI oscillator) reflects trend pressure to the downside. So while we still look at USD/CAD as being in the “bargain basement”, with short-term downside potential resulting from the drop back from the 1.04 area largely realized, we can’t exclude the risk of a drop to 1.0100/10 near-term yet”, assessed G.Moore and S.Osborne at TD Securities.
USD/CAD barriers
As of writing, the pair is losing 0.42% at 1.0166 with the next support at 1.0149 (low May 16) followed by 1.0090 (low May 14) and then 1.0064 (low May 10). On the flip side, a break above 1.0227 (high Jun.13) would open the door to 1.0254 (MA10d) and finally 1.0281 (MA21d).
USD/CAD cautious on Fed’s tapering
Extreme positioning continues to weight on the greenback although its impact has somehow attenuated throughout the week, while the omnipresent rumours on the Fed and the timing of its modification of the QE would surely pick up pace again soon. “Short-term trend momentum (as reflected in the 6-hour DMI oscillator) reflects trend pressure to the downside. So while we still look at USD/CAD as being in the “bargain basement”, with short-term downside potential resulting from the drop back from the 1.04 area largely realized, we can’t exclude the risk of a drop to 1.0100/10 near-term yet”, assessed G.Moore and S.Osborne at TD Securities.
USD/CAD barriers
As of writing, the pair is losing 0.42% at 1.0166 with the next support at 1.0149 (low May 16) followed by 1.0090 (low May 14) and then 1.0064 (low May 10). On the flip side, a break above 1.0227 (high Jun.13) would open the door to 1.0254 (MA10d) and finally 1.0281 (MA21d).