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6 Feb 2013
Forex: USD/CAD back to 0.9960 after testing lows
The Canadian dollar is now losing some ground against the greenback on Wednesday, after stronger-than-expected Ivey PMI dragged the cross to session lows in the proximities of the mid 0.99s
S.Osborne and G.Moore, strategists at TD Securities, argued that the potential rally that was on the cards on Tuesday falter around noted resistance, pushing the cross back to the 0.9945/50 region. “We still rather expected this level—essentially the gap left open by the late January rally in funds—to hold but price action looks heavy in the short-term and support does look to be at risk… We still prefer to buy USD dips while support around 0.9945/50 holds”.
At the moment, the cross is up 0.06% at 0.9962 facing the next resistance at 1.0003 (MA10d) ahead of 1.0088 (Upper Bollinger) and then 1.0101 (double highs Jan.25/28).
On the downside, a breach of 0.9948 (low Feb.4) would allow 0.9941 (MA21d) and then 0.9924 (61.8% of 0.9815-1.01001).
S.Osborne and G.Moore, strategists at TD Securities, argued that the potential rally that was on the cards on Tuesday falter around noted resistance, pushing the cross back to the 0.9945/50 region. “We still rather expected this level—essentially the gap left open by the late January rally in funds—to hold but price action looks heavy in the short-term and support does look to be at risk… We still prefer to buy USD dips while support around 0.9945/50 holds”.
At the moment, the cross is up 0.06% at 0.9962 facing the next resistance at 1.0003 (MA10d) ahead of 1.0088 (Upper Bollinger) and then 1.0101 (double highs Jan.25/28).
On the downside, a breach of 0.9948 (low Feb.4) would allow 0.9941 (MA21d) and then 0.9924 (61.8% of 0.9815-1.01001).