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14 Mar 2014
USD/CAD; perhaps a H&S developing?
FXStreet (Guatemala) - USD/CAD remains confined to a broad, choppy range within 30 pips on the 10.10 handle in the main.
Strategists at TD Securities explained that pressure continues to build for a break out and we continue to favour an eventual topside move through resistance in the low/mid 1.11s to trigger a resumption of the underlying bull trend in USD/CAD. “Trading has been rather indecisive this week but we had expected that and while the lack of movement has dulled momentum on the short-term studies, the longer-term measures of trend dynamics remain very positive, hence our faith in the broader rise in USD/CAD eventually resuming. Short-term patterns (6-hour chart, above) suggest a possible inverse H&S reversal developing this week so gains may pick up quickly again through 1.1150 for 1.1350/60”.
USD/CAD Levels
The 20 DMA is 1.1065, the 50 DMA is 1.1018 and the 200 DMA is 1.0577. RSI (14) reads 54.25. Supports are ascending 1.0911, 1.0950,1.0980, 1.1042. Spot is 1.1093 while resistances are 1.1123, 1.1160, 1.1196 and 1.1225.
Strategists at TD Securities explained that pressure continues to build for a break out and we continue to favour an eventual topside move through resistance in the low/mid 1.11s to trigger a resumption of the underlying bull trend in USD/CAD. “Trading has been rather indecisive this week but we had expected that and while the lack of movement has dulled momentum on the short-term studies, the longer-term measures of trend dynamics remain very positive, hence our faith in the broader rise in USD/CAD eventually resuming. Short-term patterns (6-hour chart, above) suggest a possible inverse H&S reversal developing this week so gains may pick up quickly again through 1.1150 for 1.1350/60”.
USD/CAD Levels
The 20 DMA is 1.1065, the 50 DMA is 1.1018 and the 200 DMA is 1.0577. RSI (14) reads 54.25. Supports are ascending 1.0911, 1.0950,1.0980, 1.1042. Spot is 1.1093 while resistances are 1.1123, 1.1160, 1.1196 and 1.1225.