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13 Feb 2014
USD/CAD trapped in a widening channel
FXStreet (Guatemala) - USD/CAD has dropped the 1.10 handle and is moving in on 1.0970 support area. The channel is being carved out and widening.
USD/CAD has been unable to penetrate to the topside with conviction but to the downside 1.09 may also be a tough area for the bears to crack. Strategists at TD Securities noted that two days of narrow range trading (so far) leaves the short-term USD/CAD trend looking tired on the daily chart but we note the strong rejection of gains through the upper 1.10s earlier in the week left a distinctly negative look (bearish outside range day) to the daily picture. “We still think near-term risks are geared modestly lower but we note that short-term retracement support is strongly reinforced by the 40-day MA (1.0902 currently) a little below the market currently”.
USD/CAD Levels
The 20 DMA is 1.1063, the 50 DMA is 1.0838 and the 200 DMA is 1.0494. RSI (14) reads 43.85. Supports are ascending from 1.0875,1.0905, 1.0953 and 1.0970. Spot is 1.0982. Resistances are 1.1090, 1.1123, 1.1138 and 1.1174.
USD/CAD has been unable to penetrate to the topside with conviction but to the downside 1.09 may also be a tough area for the bears to crack. Strategists at TD Securities noted that two days of narrow range trading (so far) leaves the short-term USD/CAD trend looking tired on the daily chart but we note the strong rejection of gains through the upper 1.10s earlier in the week left a distinctly negative look (bearish outside range day) to the daily picture. “We still think near-term risks are geared modestly lower but we note that short-term retracement support is strongly reinforced by the 40-day MA (1.0902 currently) a little below the market currently”.
USD/CAD Levels
The 20 DMA is 1.1063, the 50 DMA is 1.0838 and the 200 DMA is 1.0494. RSI (14) reads 43.85. Supports are ascending from 1.0875,1.0905, 1.0953 and 1.0970. Spot is 1.0982. Resistances are 1.1090, 1.1123, 1.1138 and 1.1174.