26 Jun 2014
USDCAD retains a heavy bias overall - TD Securities
FXStreet (Łódź) - The TD Securities FX Research Team observe that the USDCAD overall retains a heavy bias and on the longer-term charts it retains a weak bias.
Key quotes
"The mild USD bid tone that emerged yesterday failed to extend significantly, with the rally stalling around short-term congestion in the mid 1.07s overnight."
"The USD continues to generate support in the low 1.07 area but the overall tone here remains soft. Trend momentum remains bearishly aligned, which will effectively limit near-term bounces."
"USDCAD retains a weak bias on the longer-term charts and we note that trend momentum is favouring limited rebounds and broader weakness for the moment."
"We remain a little cautious on how far the USD sell off can extend for the moment though."
"Slow stochastic oscillator studies are warning that the USD is oversold—though this is not necessarily a sign of a pending reversal we caution; oversold/bought conditions can persist for lengthy periods. But it is a warning. All in, the technical tone looks weak here but there is a chance that the sell off steadies around 1.07."
Key quotes
"The mild USD bid tone that emerged yesterday failed to extend significantly, with the rally stalling around short-term congestion in the mid 1.07s overnight."
"The USD continues to generate support in the low 1.07 area but the overall tone here remains soft. Trend momentum remains bearishly aligned, which will effectively limit near-term bounces."
"USDCAD retains a weak bias on the longer-term charts and we note that trend momentum is favouring limited rebounds and broader weakness for the moment."
"We remain a little cautious on how far the USD sell off can extend for the moment though."
"Slow stochastic oscillator studies are warning that the USD is oversold—though this is not necessarily a sign of a pending reversal we caution; oversold/bought conditions can persist for lengthy periods. But it is a warning. All in, the technical tone looks weak here but there is a chance that the sell off steadies around 1.07."