Back
21 Feb 2014
USD/CAD stacking up pressure
FXStreet (Guatemala) - USD/CAD has been on the offer from 1.1200 and applying pressure towards 1.1120.
USD/CAD suffered a bout of volatility around mixed data earlier on with the Canadian Core Consumer Price Index reading 1.4% vs 1.3% consensus year on year and month on month read 0.2% vs 0.1% consensus, up on previous -0.4%. This offered a boost to the Loonie although at the same time traders needed to consider the dismal retail sale data for December that came in month on month -1.8% vs -0.4% expected and 0.5% previous. Strategists at TD Securities explained, “barring an outright crash today, the technical “damage” to the CAD done earlier this week will be sustained through the close of the week, however. Bullish outside day and week reversals for USD/CAD from retracement and moving average support in the low 1.09 area plus the break out of the consolidation range lower (bull flag signal) strongly suggests that the technical trend higher in USD/CAD is reasserting itself. We spot major support now at 1.0900/50. Resistance is 1.1225/35; above there, we target 1.16/1.17. Trend momentum signals are bullish across a range of timeframes; that should mean limited corrective weakness from here and an on going grind higher in USD/CAD”.
USD/CAD Levels
The 20 DMA is 1.1065, the 50 DMA is 1.0884 and the 200 DMA is 1.0520. RSI (14) reads 52.37. Supports are ascending from 1.0911, 1.0953, 1.0975, 1.1026. Spot is 1.1129 while resistances are 1.1123, 1.1138, 1.1174 and 1.1225.
USD/CAD suffered a bout of volatility around mixed data earlier on with the Canadian Core Consumer Price Index reading 1.4% vs 1.3% consensus year on year and month on month read 0.2% vs 0.1% consensus, up on previous -0.4%. This offered a boost to the Loonie although at the same time traders needed to consider the dismal retail sale data for December that came in month on month -1.8% vs -0.4% expected and 0.5% previous. Strategists at TD Securities explained, “barring an outright crash today, the technical “damage” to the CAD done earlier this week will be sustained through the close of the week, however. Bullish outside day and week reversals for USD/CAD from retracement and moving average support in the low 1.09 area plus the break out of the consolidation range lower (bull flag signal) strongly suggests that the technical trend higher in USD/CAD is reasserting itself. We spot major support now at 1.0900/50. Resistance is 1.1225/35; above there, we target 1.16/1.17. Trend momentum signals are bullish across a range of timeframes; that should mean limited corrective weakness from here and an on going grind higher in USD/CAD”.
USD/CAD Levels
The 20 DMA is 1.1065, the 50 DMA is 1.0884 and the 200 DMA is 1.0520. RSI (14) reads 52.37. Supports are ascending from 1.0911, 1.0953, 1.0975, 1.1026. Spot is 1.1129 while resistances are 1.1123, 1.1138, 1.1174 and 1.1225.