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20 May 2014
USD/CAD clings to 1.0900
FXStreet (Edinburgh) - The CAD continues to depreciate vs. the greenback on Tuesday, pushing the USD/CAD beyond the 1.0900 handle.
USD/CAD in 4-day highs
The pair is extending the recent bounce off the mid-1.0800s, printing fresh multi-day tops above 1.0900 the figure against the backdrop of improved sentiment around the USD. Very light docket in Canada, with only Wholesale Sales missing consensus and contracting 0.4% inter-month in March. “The daily chart suggests that spot is still consolidating, albeit at the upper end of the “bull wedge” pattern we have highlighted recently… The more positive short-term studies are helpful but we want to see a clear push through 1.0900/10 to be a little more confident that things are really turning around”, observed Shaun Osborne, Chief FX Strategist at TD Securities.
USD/CAD relevant levels
The pair is now advancing 0.29% at 1.0906 with the next resistance at 1.0934 (Kijun Sen) followed by 1.0961 (high May 6) and finally 1.0980 (21-w MA). On t he downside, a break below 1.0814 (low May 8) would open the door to 1.0762 (low Jan.8) and then 1.0737 (high Dec.20).
USD/CAD in 4-day highs
The pair is extending the recent bounce off the mid-1.0800s, printing fresh multi-day tops above 1.0900 the figure against the backdrop of improved sentiment around the USD. Very light docket in Canada, with only Wholesale Sales missing consensus and contracting 0.4% inter-month in March. “The daily chart suggests that spot is still consolidating, albeit at the upper end of the “bull wedge” pattern we have highlighted recently… The more positive short-term studies are helpful but we want to see a clear push through 1.0900/10 to be a little more confident that things are really turning around”, observed Shaun Osborne, Chief FX Strategist at TD Securities.
USD/CAD relevant levels
The pair is now advancing 0.29% at 1.0906 with the next resistance at 1.0934 (Kijun Sen) followed by 1.0961 (high May 6) and finally 1.0980 (21-w MA). On t he downside, a break below 1.0814 (low May 8) would open the door to 1.0762 (low Jan.8) and then 1.0737 (high Dec.20).