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14 Jun 2013
Flash: Scope for USD/CAD 1.0100 – TD Securities
FXstreet.com (London) - Research teams at TD Securities said that short-term USD/CAD price signals suggested that there was still good support for the USD in the mid/upper 1.01 area (bullish hourly outside range reversal formed earlier this morning). But they said a lack of upside traction and the block on the market at 1.0185 leaves the market exposed to the risk of a little more softness near-term still. “A sustained loss of support in the mid 1.01 area suggests on-going scope for a drop to the 1.01 area near-term”.
USD/CAD traded heavily yesterday
They continue and explain that USD/CAD traded heavily yesterday but they noted that a contrarian view of the big, bearish outside range lower was that this may reflect a selling climax for the market. They say the signal formed at the tail end of an extended move down, making the apparently bearish implications of the formation a bit more equivocal for us. Moreover, they continued, that the USD has struggled to push significantly below retracement support that has provided a (rough) toe-hold for the market this week. At the very least, they say the USD sell off appears to be slowing, they think.
USD/CAD traded heavily yesterday
They continue and explain that USD/CAD traded heavily yesterday but they noted that a contrarian view of the big, bearish outside range lower was that this may reflect a selling climax for the market. They say the signal formed at the tail end of an extended move down, making the apparently bearish implications of the formation a bit more equivocal for us. Moreover, they continued, that the USD has struggled to push significantly below retracement support that has provided a (rough) toe-hold for the market this week. At the very least, they say the USD sell off appears to be slowing, they think.