11 Jul 2013
USD/CAD retreats past 1.0400 level
FXstreet.com (New York) - The USD/CAD foreign exchange rate made a recovery attempt that was summarily dismissed at the 1.0434 region, before ultimately giving way and falling lower throughout US trading.
At the time of writing, the USD/CAD is now trading at 1.0394, touching its 200-day SMA, which has thus far provided a certain level of support to the pair. The next level of support lies at the 1.3078 level (July 10 low), followed by strong support at 1.0341.
USD/CAD strategic bias
According to the TD Securities Team, “The overbought condition in the USD/CAD that we worried about earlier in the week has been at least partially corrected. Moreover, the risk of a correction from the 1.06+ area through support around 1.05 that we flagged has also been realized and USD/CAD has slipped back below support at 1.0421. With support in the low 1.03 area holding though, we are inclined to look for a push back to the upper 1.04s now – we want to buy USD dips still.”
At the time of writing, the USD/CAD is now trading at 1.0394, touching its 200-day SMA, which has thus far provided a certain level of support to the pair. The next level of support lies at the 1.3078 level (July 10 low), followed by strong support at 1.0341.
USD/CAD strategic bias
According to the TD Securities Team, “The overbought condition in the USD/CAD that we worried about earlier in the week has been at least partially corrected. Moreover, the risk of a correction from the 1.06+ area through support around 1.05 that we flagged has also been realized and USD/CAD has slipped back below support at 1.0421. With support in the low 1.03 area holding though, we are inclined to look for a push back to the upper 1.04s now – we want to buy USD dips still.”