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14 Apr 2015
USD/CAD remains capped by 1.2500
FXStreet (Córdoba) - USD/CAD fell sharply during the New York session and struck a 6-day low at the 1.2445 zone amid broad greenback weakness triggered by disappointing US retail sales.
After bottoming out at 1.2443, USD/CAD managed to recover a few pips, but with the subsequent bounce capped by the 1.2500 level, the pair was confined to a narrow range over the last hours. At time of writing, the USD/CAD is trading at 1.2485, 0.85% below its opening price.
USD/CAD technical outlook
“Weakness back below the 28– and 40-day MA signals suggests that near-term risks are still geared to the downside in funds”, said the TD Securities team. “Daily trend momentum is bearish but not especially strong at this point, suggesting a downside bias on the daily chart—but (perhaps) not enough momentum right now to break below the base of the 1.24/1.28 range that has developed since late January. We see strong resistance in the mid/upper 1.25s”.
After bottoming out at 1.2443, USD/CAD managed to recover a few pips, but with the subsequent bounce capped by the 1.2500 level, the pair was confined to a narrow range over the last hours. At time of writing, the USD/CAD is trading at 1.2485, 0.85% below its opening price.
USD/CAD technical outlook
“Weakness back below the 28– and 40-day MA signals suggests that near-term risks are still geared to the downside in funds”, said the TD Securities team. “Daily trend momentum is bearish but not especially strong at this point, suggesting a downside bias on the daily chart—but (perhaps) not enough momentum right now to break below the base of the 1.24/1.28 range that has developed since late January. We see strong resistance in the mid/upper 1.25s”.