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31 Mar 2015
USD/CAD bull move might extend to high 1.27/low 1.28 area – TDS
FXStreet (Barcelona) - FX Strategists at TD Securities believe that the bid tone for USD/CAD might lead the pair higher towards 1.27/1.28 area within the next few days, with low 1.28 levels expected to cap the upside of the pair in the near-term.
Key Quotes
“USDCAD’s steady push higher from the low 1.26s over the course of the session so far may not be complete. The USD’s renewed bid tone may well extend to the high 1.27/low 1.28 area again in the next few days, with little obvious resistance on the short-term charts between current levels and the recent highs.”
“The ultimate retracement resistance point (1.2733, 76.4% retracement of the March 18th sell-off) coincides with some short-term congestion and represents the last obvious block on the USD recovering all of the ground lost through the middle of the month.”
“The daily picture looks a little more constructive for the USD too; spot has moved back above the 28– and 40-day MA signals with relative ease after trend support in the low 1.24 area held last week.”
“We still rather think than the empathic rejections of the recent range peaks via big, bearish reversal signals on the daily and weekly charts imply that the market will struggle to move significantly higher near-term; the low 1.28 area should still represent strong USD resistance.”
“But it would be hard to argue with a rise to new USDCAD highs alongside a clear strengthening in bull trend momentum.”
Key Quotes
“USDCAD’s steady push higher from the low 1.26s over the course of the session so far may not be complete. The USD’s renewed bid tone may well extend to the high 1.27/low 1.28 area again in the next few days, with little obvious resistance on the short-term charts between current levels and the recent highs.”
“The ultimate retracement resistance point (1.2733, 76.4% retracement of the March 18th sell-off) coincides with some short-term congestion and represents the last obvious block on the USD recovering all of the ground lost through the middle of the month.”
“The daily picture looks a little more constructive for the USD too; spot has moved back above the 28– and 40-day MA signals with relative ease after trend support in the low 1.24 area held last week.”
“We still rather think than the empathic rejections of the recent range peaks via big, bearish reversal signals on the daily and weekly charts imply that the market will struggle to move significantly higher near-term; the low 1.28 area should still represent strong USD resistance.”
“But it would be hard to argue with a rise to new USDCAD highs alongside a clear strengthening in bull trend momentum.”