USD/CAD: 1.2560 holds ahead of bigger tests

FXStreet (Guatemala) - USD/CAD is currently trading at 1.2612 with a high of 1.2666 and a low of 1.2551.

USD/CAD has been choppy over Yellen but bears struggled at 1.2560 and the 1.26 handle holds well for the time being. However, despite some positive underpinnings, analysts at TD Securities explained that the USD/CAD’s gains since the start of the week have felt a bit of a struggle.

"We noted this yesterday and today’s mid-morning drop in the market reaffirms the likelihood that the USD will find it hard to extend gains at the moment. The hourly chart, above, highlights a large-ish intraday reversal signal developing (bearish outside range session), with the dip occurring from 1.2660 where the USD peaked earlier in the day." Technically, the analysts added that USD/CAD has found support around 1.2560/65 but 1.2540/45 is the big test; below here intraday and USD losses could extend to 1.25 or a little blow.

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