19 Dec 2014
USD/CAD: Three technical strikes
FXStreet (Guatemala) - USD/CAD is trading at 1.1623, up 0.22% on the day, having posted a daily high at 1.1635 and low at 1.1565.
USD/CAD remains in the familiar range and despite the poor CPI results, that likely were already factored into the price of funds, the pair has managed to resist demand up to 1.1638 the high and remains contained by the ascending channel’s resistance before the 1.17 handle.
Analysts at TD Securities explained that the near-term outlook appears to be sideways for funds. “The broader technical picture is mixed; on the one hand, trend oscillator signals on the longer-term charts are still positive but on the other, there are a number of potential technical strikes against the USD that warrant attention.”
USD/CAD key technical strikes:
The analysts sight three technical strikes as follows:
1) "The USD topped outat the upper end of the established bull channel which argues for a push back towards the mid/lower channel zone.
2) The narrowing, upward tilting range developing since late November is a classic sign of a move up losing power.
3) Weekly charts risk forming a small-range “doji” candle this week, also a signal associated with a market stall”.
The analysts at TD Securities explained that below daily trend (converges with hourly) support at 1.1564 will target a drop back to the upper 1.14 area, we expect. Meanwhile, a break above 1.1660/70 should see spot resume its upside push. "We remain cautiously bullish and continue to look at dips as a buy".
USD/CAD remains in the familiar range and despite the poor CPI results, that likely were already factored into the price of funds, the pair has managed to resist demand up to 1.1638 the high and remains contained by the ascending channel’s resistance before the 1.17 handle.
Analysts at TD Securities explained that the near-term outlook appears to be sideways for funds. “The broader technical picture is mixed; on the one hand, trend oscillator signals on the longer-term charts are still positive but on the other, there are a number of potential technical strikes against the USD that warrant attention.”
USD/CAD key technical strikes:
The analysts sight three technical strikes as follows:
1) "The USD topped outat the upper end of the established bull channel which argues for a push back towards the mid/lower channel zone.
2) The narrowing, upward tilting range developing since late November is a classic sign of a move up losing power.
3) Weekly charts risk forming a small-range “doji” candle this week, also a signal associated with a market stall”.
The analysts at TD Securities explained that below daily trend (converges with hourly) support at 1.1564 will target a drop back to the upper 1.14 area, we expect. Meanwhile, a break above 1.1660/70 should see spot resume its upside push. "We remain cautiously bullish and continue to look at dips as a buy".