31 Jul 2013
Flash: USD/CAD in early stages of constructive phase – TD Securities
FXstreet.com (New York) - The TD Securities Team analyses the short-term outlook of the USD/CAD.
Key quotes
“We noted a small, bullish Head & Shoulders reversal on the 1-hour chart yesterday as funds pushed through neckline resistance in the upper 1.02 area and spot subsequently rallied to a pinpoint test of the 1.0329 measured-move target (note convergence with the early July low on the 6-hour, above) within 24 hours.”
“We think that the market is in the early stages of a more constructive USD phase. A push through the 1.0330 area today would be an additional plus and put a little more distance between spot and what we think is now key short (and medium) term support at 1.0250.”
“There is the possibility that price action is carving out a slightly bigger (through still essentially short-term) basing formation. If so, any minor corrective losses should be limited to the 1.03 area (or a little below) now.”
Key quotes
“We noted a small, bullish Head & Shoulders reversal on the 1-hour chart yesterday as funds pushed through neckline resistance in the upper 1.02 area and spot subsequently rallied to a pinpoint test of the 1.0329 measured-move target (note convergence with the early July low on the 6-hour, above) within 24 hours.”
“We think that the market is in the early stages of a more constructive USD phase. A push through the 1.0330 area today would be an additional plus and put a little more distance between spot and what we think is now key short (and medium) term support at 1.0250.”
“There is the possibility that price action is carving out a slightly bigger (through still essentially short-term) basing formation. If so, any minor corrective losses should be limited to the 1.03 area (or a little below) now.”