Flash: USD/CAD trading around 40-day MA, pointed higher? – TD Securities

FXstreet.com (New York) - The TD Securities team analyzes the short-term outlook of the USD/CAD.

Key quotes

“The USD/CAD is fluctuating narrowly around the 40-day MA (1.0383) but the broader trend looks constructive for funds. We think the correction from 1.06+ high reached early in July is complete, with the USD finding solid and consistent support in the 1.0250 area last week (76.4% retracement of the 1.01/1.06 rally).”

“This is now key short-term support – the USD has looked oversold over the past week and oscillator studies have started to correct higher in bullish fashion.”

“We look for more gains through the upper 1.03 area this week and for the market to challenge short-term resistance at 1.0420/40 (minor highs) ahead of a return to the 1.06 area.”

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