31 Jul 2013
Flash: USD/CAD momentum building? – TD Securities
FXstreet.com (New York) - The TD Securities Team analyzes the recent slide in the USD/CAD and its near-term outlook.
Key quotes
“We continue to feel that the recent weakening trend in USD/CAD is losing momentum. The consolidation around 1.0250 – key 76.4% Fibonacci retracement support – combined with the daily slow stochastic oscillator well into oversold territory suggested to us at the start of the week that the balance of technical risks was starting to point higher for USD/CAD.”
“Gains today are a start to the turnaround but the reversal is not yet definitive. Short-term signs are encouraging but, absent a clear bull reversal signal, USD/CAD will have to do it the hard way and push back through the high 1.03s to signal strength.”
Key quotes
“We continue to feel that the recent weakening trend in USD/CAD is losing momentum. The consolidation around 1.0250 – key 76.4% Fibonacci retracement support – combined with the daily slow stochastic oscillator well into oversold territory suggested to us at the start of the week that the balance of technical risks was starting to point higher for USD/CAD.”
“Gains today are a start to the turnaround but the reversal is not yet definitive. Short-term signs are encouraging but, absent a clear bull reversal signal, USD/CAD will have to do it the hard way and push back through the high 1.03s to signal strength.”