13 Jan 2015
USD/CAD retains a bullish technical bias - TDS
FXStreet (Bali) - USDCAD retains a bullish technical bias on the short-term charts, notes the FX Team at TD Securities.
Key Quotes
"USDCAD retains a bullish technical bias on the short-term (6-hour) charts. USD-bullish trend momentum and the sustained break above the December consolidation range suggests that another marked upward move in funds is still developing."
"We think the break above the extended, sideways consolidation (bull flag) implies scope for a repeat of the 1.12/1.17 move up from the break out point (1.1660). Measuring this a little more precisely gives us an upside target 1.2125 over the next 1-2 months."
"Look for limited downside potential in USDCAD from here; we think there is solid support for the USD in the low 1.18s but, having made a push above 1.19 now, a realistic base for the USD from here might be 1.1850/75."
"USDCAD’s move up may be picking up momentum again. The angle of attack in the USD rally certainly looks to be steepening as the break above the old trend channel is sustained. Moving averages are “flaring” away from each other and the alignment of trend momentum studies on the short, medium and long term charts suggest no real scope for a USD drop at present and modest dips remain a buy."
Key Quotes
"USDCAD retains a bullish technical bias on the short-term (6-hour) charts. USD-bullish trend momentum and the sustained break above the December consolidation range suggests that another marked upward move in funds is still developing."
"We think the break above the extended, sideways consolidation (bull flag) implies scope for a repeat of the 1.12/1.17 move up from the break out point (1.1660). Measuring this a little more precisely gives us an upside target 1.2125 over the next 1-2 months."
"Look for limited downside potential in USDCAD from here; we think there is solid support for the USD in the low 1.18s but, having made a push above 1.19 now, a realistic base for the USD from here might be 1.1850/75."
"USDCAD’s move up may be picking up momentum again. The angle of attack in the USD rally certainly looks to be steepening as the break above the old trend channel is sustained. Moving averages are “flaring” away from each other and the alignment of trend momentum studies on the short, medium and long term charts suggest no real scope for a USD drop at present and modest dips remain a buy."