30 Jul 2013
Flash: USD/CAD starts to point higher on technical risks – TD Securities
FXstreet.com (New York) - The TD Securities Team analyzes the recent slide in the USD/CAD and its near-term outlook.
Key quotes
“There is no real change on the daily picture for USD/CAD, though that may be significant in and of itself. The slide in funds after losing support in the upper 1.03 zone earlier this month appears to be weakening, as we noted above.”
“The failure to keep making lower lows and lower highs suggests that the USD is consolidating its recent weakness at least.”
However, “that consolidation is occurring with the daily slow stochastic oscillator well into oversold territory and with the USD stabilizing around the 76.4% Fibonacci retracement support at 1.0250. We think the balance of technical risks is starting to point higher for USD/CAD.”
Key quotes
“There is no real change on the daily picture for USD/CAD, though that may be significant in and of itself. The slide in funds after losing support in the upper 1.03 zone earlier this month appears to be weakening, as we noted above.”
“The failure to keep making lower lows and lower highs suggests that the USD is consolidating its recent weakness at least.”
However, “that consolidation is occurring with the daily slow stochastic oscillator well into oversold territory and with the USD stabilizing around the 76.4% Fibonacci retracement support at 1.0250. We think the balance of technical risks is starting to point higher for USD/CAD.”