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15 Feb 2013
Forex Flash: USD/CAD broader structure remains USD-positive – TD Securities
TD Securities analysts say that, in spite of the squeeze higher, the broader short-term range remains intact, but the strength of the rally so far today suggests that the recent highs at 1.0090/00 should be tested in the next day or so. "The 0.9990/00 area is key support now", wrote analysts Shaun Osborne and Greg Moore.
"After all the chop and indecision in USD/CAD over the past couple of weeks, it has been easy to lose sight of the fact that the broader structure of this market remains USD-positive", they added, expecting the cross to test the 1.03 area in the weeks ahead. "The USD has struggled to hold a bid this week and some price signals have warned of the potential for weakness but losses have been limited, with the 200-day MA supporting the market at 0.9991 currently while the 40-day MA is slowly creeping higher for a potential bullish crossover signal", they continued, pointing to positive trend momentum signals supporting the outlook for more gains and limited losses . "The 1.01 area remains a hurdle but the USD rally may pick up speed above", they concluded.
"After all the chop and indecision in USD/CAD over the past couple of weeks, it has been easy to lose sight of the fact that the broader structure of this market remains USD-positive", they added, expecting the cross to test the 1.03 area in the weeks ahead. "The USD has struggled to hold a bid this week and some price signals have warned of the potential for weakness but losses have been limited, with the 200-day MA supporting the market at 0.9991 currently while the 40-day MA is slowly creeping higher for a potential bullish crossover signal", they continued, pointing to positive trend momentum signals supporting the outlook for more gains and limited losses . "The 1.01 area remains a hurdle but the USD rally may pick up speed above", they concluded.