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25 Apr 2013
Forex: USD/CAD in lows below 1.0200
FXstreet.com (Barcelona) - The Canadian dollar is benefiting from the risk-on tone dominating the market sentiment and is dragging the cross to levels below the key support at 1.0200 on Thursday, printing at the same time fresh weekly lows.
“Short-term downside risks have increased, but the 40-day MA (1.0219) provides some additional underpinning so far today and we generally feel that the broader, bullish outlook has been delayed rather than subverted in a substantial way. We still rather think that modest USD declines are a buy. Only the clear loss of support just below 1.01 turns the picture negative at this stage”, suggested G.Moore and S.Osborne, FX Strategists at TD Securities.
At the moment, the cross is losing 0.56% ay 1.0198 and a violation of 1.0190 (50% of 1.0084-1.0295) would then target 1.0165 (61.8% of 1.0084-1.0295) en route to 1.0084 (low Apr.11).
On the upside, the initial hurdle is located at 1.0258 (high Apr.25) followed by 1.0286 (high Apr.22) and then 1.0295 (high Apr.17).
“Short-term downside risks have increased, but the 40-day MA (1.0219) provides some additional underpinning so far today and we generally feel that the broader, bullish outlook has been delayed rather than subverted in a substantial way. We still rather think that modest USD declines are a buy. Only the clear loss of support just below 1.01 turns the picture negative at this stage”, suggested G.Moore and S.Osborne, FX Strategists at TD Securities.
At the moment, the cross is losing 0.56% ay 1.0198 and a violation of 1.0190 (50% of 1.0084-1.0295) would then target 1.0165 (61.8% of 1.0084-1.0295) en route to 1.0084 (low Apr.11).
On the upside, the initial hurdle is located at 1.0258 (high Apr.25) followed by 1.0286 (high Apr.22) and then 1.0295 (high Apr.17).