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27 Jan 2014
Flash: USD/CAD 1.0990/1.1010 major support; target at 1.1265 - TDS
FXstreet.com (San Francisco) - Shaun Osbourne, Chief FX Strategist at TD Securities commented that the recent decline in the USD/CAD seems to be trying to stabilize now. Osbourne believes last week’s peak of 1.11 is a neat bull flag and affirms TDS continues to target USD/CAD at 1.1265.
Keu Quotes:
USDCAD’s backtracking since last week’s late peak in the high 1.11s is taking the form of a neat bull flag. The USD has taken back 61.8% (and change) of the mid-week rally and looks to be trying to stabilize now.
We think 1.0990/1.1010 represents major support on the short-tem charts now (trend, gap, flag base), if spot gets there at all. The short-term (hourly) charts suggest USDCAD is trying to base. Intraday gains back through 1.1066 suggests that the bull trend is getting back on track.
The drop back in spot since late last year is right in that ballpark and, with trend momentum still very bullish on the longer-term studies, we look for the underlying bull trend to reassert itself soon. We continue to target 1.1265 area as the near-term, bull objective.
Keu Quotes:
USDCAD’s backtracking since last week’s late peak in the high 1.11s is taking the form of a neat bull flag. The USD has taken back 61.8% (and change) of the mid-week rally and looks to be trying to stabilize now.
We think 1.0990/1.1010 represents major support on the short-tem charts now (trend, gap, flag base), if spot gets there at all. The short-term (hourly) charts suggest USDCAD is trying to base. Intraday gains back through 1.1066 suggests that the bull trend is getting back on track.
The drop back in spot since late last year is right in that ballpark and, with trend momentum still very bullish on the longer-term studies, we look for the underlying bull trend to reassert itself soon. We continue to target 1.1265 area as the near-term, bull objective.