Flash: USD/CAD stochastic falls into oversold territory – TD Securities

FXstreet.com (New York) - The TD Securities team calculates the short-term technicals of the USD/CAD and EUR/CAD.

Key quotes

“There is little change in USD/CAD on the daily chart – daily signals reflect the levels outlined on the short-term chart above. Key support remains 1.0320/40 in the near-term while 1.0421 represents the topside technical levels to monitor.”

“The daily slow USD/CAD stochastic signal is drooping into oversold territory, which may make it harder for the market to push decisively lower. This is not yet a bullish signal though.”

“The oscillator only signals a bullish turn in the market once it has turned higher itself. We still favor USD longs but softer levels cannot be excluded as a risk at this point.”

Meanwhile, “the EUR/CAD closed marginally higher on the week overall Friday and has found a little more support again so far Monday to test short-term trends resistance in the upper 1.36 area. Key short-term resistance is 1.3705/10, effectively the top of the range since early July.”

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