10 Oct 2013
USD/CAD bounces off 1.0370
FXstreet.com (Edinburgh) -The USD rally seems to have lost momentum, dragging the USD/CAD from session peaks around 1.0420 to lows near 1.0370, attempting a rebound afterwards.
USD/CAD focus on US events
The pair is surrendering part of the recent gains, retracing ground from 5-week highs in the vicinity of 1.0420, amidst a positive prospect for the US Government shutdown and the debt ceiling. Analysts at TD Securities noted “we still rather think the broader picture is USD-positive—due to the rebound from the 200-day MA and the extension this week through the low 1.03 area that has capped the market since late September—but gains may remain a bit of a grind. We prefer to look for buying opportunities—which has been our default position since the start of the year”.
USD/CAD levels to watch
The pair is now losing 0.05% at 1.0388 with the next support at 1.0354 (low Oct.9) followed by 1.0334 (high Oct.7) and then 1.0287 (low Oct.7). On the flip side, a breakout of 1.0408 (high Oct.9) would open the door to 1.0434 (high sep.9) and then 1.0472 (low Aug.27).
USD/CAD focus on US events
The pair is surrendering part of the recent gains, retracing ground from 5-week highs in the vicinity of 1.0420, amidst a positive prospect for the US Government shutdown and the debt ceiling. Analysts at TD Securities noted “we still rather think the broader picture is USD-positive—due to the rebound from the 200-day MA and the extension this week through the low 1.03 area that has capped the market since late September—but gains may remain a bit of a grind. We prefer to look for buying opportunities—which has been our default position since the start of the year”.
USD/CAD levels to watch
The pair is now losing 0.05% at 1.0388 with the next support at 1.0354 (low Oct.9) followed by 1.0334 (high Oct.7) and then 1.0287 (low Oct.7). On the flip side, a breakout of 1.0408 (high Oct.9) would open the door to 1.0434 (high sep.9) and then 1.0472 (low Aug.27).