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7 Feb 2013
Forex Flash: Buy USD/CAD dips while support 0.9945/50 holds - TDS
Resistance in the upper 0.99 area was reaffirmed yesterday, after a rapid selloff pushing the pair back towards key short-term support at 0.9945/50, notes Shaun Osborne, Chief FX Strategist at TDS.
"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" he says.
Looking at the daily chart, Shaun notes: "We remain a little more constructive for the USD as the bull reversal late last week through Monday (“morning star” reversal) remains valid. We still prefer to buy USD dips while support around 0.9945/50 holds."
"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" he says.
Looking at the daily chart, Shaun notes: "We remain a little more constructive for the USD as the bull reversal late last week through Monday (“morning star” reversal) remains valid. We still prefer to buy USD dips while support around 0.9945/50 holds."