8 Aug 2013
Flash: USD/CAD plunge reflective of USD weakness – TD Securities
FXstreet.com (New York) - The USD/CAD retains a softer bias so far today, reflecting the broadly weaker USD trend across the g-10 pairs, notes the TD Securities Team.
Key quotes
“We still think the overall outlook for USD/CAD remains constructive though; current weakness in funds reflects a market consolidating rather than reversing.”
Short-term charts show resistance in the 1.0440/45 area holding USD gains yesterday and the market slipping back to short-term support (minor inverse H&S neckline) at 1.0394 today.”
“The textbook rule in these cases is that the neckline needs to hold for the formation to remain valid. We usually allow for some limited “slippage” around the neckline and only consider these sorts of signals invalidated if weakness is persistent or extensive. We look for the USD to gain a little traction in the mid/upper 1.03s in the next day or so.”
Key quotes
“We still think the overall outlook for USD/CAD remains constructive though; current weakness in funds reflects a market consolidating rather than reversing.”
Short-term charts show resistance in the 1.0440/45 area holding USD gains yesterday and the market slipping back to short-term support (minor inverse H&S neckline) at 1.0394 today.”
“The textbook rule in these cases is that the neckline needs to hold for the formation to remain valid. We usually allow for some limited “slippage” around the neckline and only consider these sorts of signals invalidated if weakness is persistent or extensive. We look for the USD to gain a little traction in the mid/upper 1.03s in the next day or so.”