4 Nov 2013
USD/CAD dips are another chance to get long?
FXstreet.com (London) - USD/CAD’s short-term charts are flashing some mixed signals so far today.
Research teams at TD Securities explain that in the negative column, the loss of support in the 1.0420 zone confers a softer look to short-term price action. “Additionally, short-term trend momentum signals are bearish but not especially strong at present. On the positive side, USD losses so far have been limited and the market may simply be consolidating last week’s pop to the high 1.04s (bull wedge or bull flag signal potentially unfolding)”. They said that they can’t rule out a little more weakness here near-term to retrace some of last week’s rally but they rather think that losses will remain contained to the mid/upper 1.03 area for the moment. “The daily trend oscillators are still bullish for USD/CAD and in contrast to the negative signal on the short-term chart noted above. They explained that the medium-term trend in USD/CAD remains higher, as does the shorter-term (daily) trend so they rather think near-term weakness is likely to remain limited and that dips will offer USD buyers another chance to get long.
USD/CAD Levels
The 20 DMA is 1.0377, the 50 DMA is 1.0376 and the 200 DMA is 1.0282. RSI (14) reads 43.52. Supports are ascending from 1.0340, 1.0366 and 1.0384. spot is 1.0411 while resistances are 1.0419, 1.0454, 1.0464, 1.0497 and 1.0505.
Research teams at TD Securities explain that in the negative column, the loss of support in the 1.0420 zone confers a softer look to short-term price action. “Additionally, short-term trend momentum signals are bearish but not especially strong at present. On the positive side, USD losses so far have been limited and the market may simply be consolidating last week’s pop to the high 1.04s (bull wedge or bull flag signal potentially unfolding)”. They said that they can’t rule out a little more weakness here near-term to retrace some of last week’s rally but they rather think that losses will remain contained to the mid/upper 1.03 area for the moment. “The daily trend oscillators are still bullish for USD/CAD and in contrast to the negative signal on the short-term chart noted above. They explained that the medium-term trend in USD/CAD remains higher, as does the shorter-term (daily) trend so they rather think near-term weakness is likely to remain limited and that dips will offer USD buyers another chance to get long.
USD/CAD Levels
The 20 DMA is 1.0377, the 50 DMA is 1.0376 and the 200 DMA is 1.0282. RSI (14) reads 43.52. Supports are ascending from 1.0340, 1.0366 and 1.0384. spot is 1.0411 while resistances are 1.0419, 1.0454, 1.0464, 1.0497 and 1.0505.