25 Apr 2014
USD/USD supported at 1.1020
FXStreet (Edinburgh) - The USD/CAD is extending the consolidation pattern just above the key 1.1000 handle on Friday.
USD/CAD focus on US docket
Not much happening in the pair this week, just clinging to the 1.1000 mark and looking to consolidate the recent bounce off the mid-1.0800s. Ahead in the day, the US Services PMI tracked by Markit and the Reuters/Michigan sentiment index will be in the spotlight. Shaun Osborne, Chief FX Strategist at TD Securities commented, “USDCAD’s broader technical patterns are positive. The weekly shows a solid rebound in USDCAD from retracement support earlier in April, defined by a bullish weekly (“morning star”) reversal. This signals that the correction from the 1.1277 high to the upper 1.08 area is complete and, with the weekly DMI signal still in clear bullish territory, we think the stage is set for a resumption of the USD’s track higher”.
USD/CAD levels to consider
The pair is now up 0.01% at 1.1024 facing the next hurdle at 1.1048 (high Apr.23) followed by 1.1051 (55-d MA) and then 1.1069 (50% of 1.1279-1.0858). On the downside, a break below 1.1015 (low Apr.24) would open the door to 1.1000 (low Apr.22) and finally 1.0999 (21-d MA).
USD/CAD focus on US docket
Not much happening in the pair this week, just clinging to the 1.1000 mark and looking to consolidate the recent bounce off the mid-1.0800s. Ahead in the day, the US Services PMI tracked by Markit and the Reuters/Michigan sentiment index will be in the spotlight. Shaun Osborne, Chief FX Strategist at TD Securities commented, “USDCAD’s broader technical patterns are positive. The weekly shows a solid rebound in USDCAD from retracement support earlier in April, defined by a bullish weekly (“morning star”) reversal. This signals that the correction from the 1.1277 high to the upper 1.08 area is complete and, with the weekly DMI signal still in clear bullish territory, we think the stage is set for a resumption of the USD’s track higher”.
USD/CAD levels to consider
The pair is now up 0.01% at 1.1024 facing the next hurdle at 1.1048 (high Apr.23) followed by 1.1051 (55-d MA) and then 1.1069 (50% of 1.1279-1.0858). On the downside, a break below 1.1015 (low Apr.24) would open the door to 1.1000 (low Apr.22) and finally 1.0999 (21-d MA).