Flash: USD/CAD looks to extend higher – TD Securities

FXstreet.com (New York) - The USD/CAD’s push through the 40-day MA (1.0390 currently) confers a little more technical strength in the broader outlook but we can look back at the early August experience to see that such developments does not always stick, suggests the TD Securities Team.

Key quotes

“The market reaction to the 1.0445/50 area in the next day or two will determine whether the move up extends or not. We think prospects for an extension higher are somewhat better now than earlier in the month.”

“The daily DMI oscillator is still a little short of a clearly bullish signal but it is supportive of move up. A clear push through 1.0450 would underpin the impression of an important low having formed earlier this month in the upper 1.02 area and pave the way for a quick return to 1.0600/50.”