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12 Mar 2014
USD/CAD looking constructive
FXStreet (Guatemala) - USD/CAD has reached a high of 1.1155 and has since met supply taking it down to test the support of 1.1120 ahead of psychological 1.1100.
Strategists at TD Securities noted, in essence, USD/CAD continues to consolidate but the pattern of trade is more constructive than anything in our opinion. “The salient feature of the daily (and weekly chart) remains the strong reversal from the 1.0911 area in February (bullish outside day/week signals). The narrowing range in spot since the early February high is taking the form of a classic bull wedge consolidation so sustained gains through 1.1140 should herald a resumption of the broader bull trend—even ahead of a push to new cycle highs”.
USD/CAD Levels
The 20 DMA is 1.1045, the 50 DMA is 1.0973 and the 200 DMA is 1.0558. RSI (14) reads 41.35. Supports are ascending from 1.0955, 1.0980, 1.1044 and 1.1071. Spot is 1.1115 while resistances are 1.1148, 1.1160, 1.1196 and 1.1225.
Strategists at TD Securities noted, in essence, USD/CAD continues to consolidate but the pattern of trade is more constructive than anything in our opinion. “The salient feature of the daily (and weekly chart) remains the strong reversal from the 1.0911 area in February (bullish outside day/week signals). The narrowing range in spot since the early February high is taking the form of a classic bull wedge consolidation so sustained gains through 1.1140 should herald a resumption of the broader bull trend—even ahead of a push to new cycle highs”.
USD/CAD Levels
The 20 DMA is 1.1045, the 50 DMA is 1.0973 and the 200 DMA is 1.0558. RSI (14) reads 41.35. Supports are ascending from 1.0955, 1.0980, 1.1044 and 1.1071. Spot is 1.1115 while resistances are 1.1148, 1.1160, 1.1196 and 1.1225.