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28 Nov 2013
USD/CAD constructive sub 1.06 handle
FXstreet.com (London) - USD/CAD has been sub 1.0600 and is constructive in a wedge formation for the end of the week.
Strategists at TD Securities noted that the strong session for funds Wednesday is followed today with consolidation. “Market holidays probably have something to do with the stunted range but an inside range session today (coming on the heels of the strong USD rally) may suggest more consolidation below the 1.0600/05 area as the market mulls its next move. We think the broader direction for USD/CAD is higher as we move into 2014 but the rally in USD/CAD may have sucked in some fresh longs at uncomfortable levels if there is any meaningful pull-back in the near-term. With our 1.06 target reached, we are looking for buying opportunities still here but we would rather buy a dips than chase the USD higher. Major support now is 1.0495/00”.
USD/CAD Levels
The 20 DMA is 1.0474, the 50 DMA is 1.0397 and the 200 DMA is 1.0323.RSI (14) reads 65.10. Supports are ascending from 1.0414, 1.0436 ,1.0480 and 1.0516. Spot is currently 1.0585, 1.0609, 1.0658, 1.0674 and 1.0721.
Strategists at TD Securities noted that the strong session for funds Wednesday is followed today with consolidation. “Market holidays probably have something to do with the stunted range but an inside range session today (coming on the heels of the strong USD rally) may suggest more consolidation below the 1.0600/05 area as the market mulls its next move. We think the broader direction for USD/CAD is higher as we move into 2014 but the rally in USD/CAD may have sucked in some fresh longs at uncomfortable levels if there is any meaningful pull-back in the near-term. With our 1.06 target reached, we are looking for buying opportunities still here but we would rather buy a dips than chase the USD higher. Major support now is 1.0495/00”.
USD/CAD Levels
The 20 DMA is 1.0474, the 50 DMA is 1.0397 and the 200 DMA is 1.0323.RSI (14) reads 65.10. Supports are ascending from 1.0414, 1.0436 ,1.0480 and 1.0516. Spot is currently 1.0585, 1.0609, 1.0658, 1.0674 and 1.0721.