23 May 2014
USD/CAD looking constructive, possibly bullish - TDS
FXStreet (Guatemala) - Strategists at TD Securities explained that the mid-week rally and stall out in the mid 1.09s is starting to look a little costly for the USD/CAD.
“A break above key daily trend resistance was achieved but the rally failed to flourish and price has subsequently moved back to effectively retest the break out”.
“We continue to think the broader outlook here is more constructive, however”.
“The March/April decline in the market has lost momentum and the break above 1.0875, the ceiling of a bull wedge formation, has bullish connotations”.
“But the 1.0875 area (or very close to it) has to hold this retest to sustain the positive implications of the bull wedge. If it fails to hold, we have to look for a retest of 1.08”.
“USD/CAD gains through the 40-day MA (1.0959 today) are needed to bolster the USD move higher from here”.
“A break above key daily trend resistance was achieved but the rally failed to flourish and price has subsequently moved back to effectively retest the break out”.
“We continue to think the broader outlook here is more constructive, however”.
“The March/April decline in the market has lost momentum and the break above 1.0875, the ceiling of a bull wedge formation, has bullish connotations”.
“But the 1.0875 area (or very close to it) has to hold this retest to sustain the positive implications of the bull wedge. If it fails to hold, we have to look for a retest of 1.08”.
“USD/CAD gains through the 40-day MA (1.0959 today) are needed to bolster the USD move higher from here”.