25 Oct 2013
USD/CAD a long play still?
FXstreet.com (London) - USD/CAD has scored a high of 1.0423 and a low of 1.415, stuck in a tight range after a good rally from below 1.0370 yesterday.
The Bank of Canada removed its long-held tightening bias this week and research teams at TD Securities have pushed back its call for the first BoC rate hike and we have adjusted our forecast for USD/CAD.This important shift in stance from BofC yesterday had a statement that contained large changes. The key factor was the removal of the 'soft tightening bias' that had been in place for a while; on the basis of "sizeable" excess capacity in the economy and downside risks to inflation. Overall, markets are playing a short position in the CAD.
USD/CAD Levels
The 20 DMA is 1.0336, the 50 DMA is 1.0373 and the 200 DMA is 1.0268. RSI (18) reads 67.05 while supports are ascending from 1.0182, 1.0271, 1.0283, 1.0305 and 1.0375. Spot is currently while resistances are 1.0420, 1.0434, 1.0472 and 1.0505.
The Bank of Canada removed its long-held tightening bias this week and research teams at TD Securities have pushed back its call for the first BoC rate hike and we have adjusted our forecast for USD/CAD.This important shift in stance from BofC yesterday had a statement that contained large changes. The key factor was the removal of the 'soft tightening bias' that had been in place for a while; on the basis of "sizeable" excess capacity in the economy and downside risks to inflation. Overall, markets are playing a short position in the CAD.
USD/CAD Levels
The 20 DMA is 1.0336, the 50 DMA is 1.0373 and the 200 DMA is 1.0268. RSI (18) reads 67.05 while supports are ascending from 1.0182, 1.0271, 1.0283, 1.0305 and 1.0375. Spot is currently while resistances are 1.0420, 1.0434, 1.0472 and 1.0505.