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17 Dec 2013
USD/CAD has limited scope for weakness?
FXstreet.com (London) - USD/CAD has reached a high of 1.0619 on the session so far, despite disappointing CPI data from the US.
US CPI year on year printed 1.25 vs a consensus of 1.3%. Strategists at TD Securities noted that the market has turned a little choppy in USDCAD over the past few days but the salient feature of the daily chart picture remains the big, bullish outside range reversal struck last week. The market has not seen a whole lot of follow through buying interest—so far—to confirm that a major low/reversal is in but the weight of evidence is leaning bullish. Aside from the positive price action which suggests a solid floor on the daily chart around 1.0565/70 now, trend momentum remains bullishly positioned on the daily studies (as it does on the longer-term charts as well). With positive trend momentum so deeply ingrained in the market, we continue to see limited scope for USD/CAD weakness near-term.
USD/CAD Levels
The 20 DMA is 1.0587, the 50 DMA is 1.0480 and the 200 DMA 1.0347. RSI (14) 64.44. Supports are ascending from 1.0464, 1.0485, 1.0516, 1.0552, 1.0586, 1.0670, 1.0708, 1.0754 and 1.0804.
US CPI year on year printed 1.25 vs a consensus of 1.3%. Strategists at TD Securities noted that the market has turned a little choppy in USDCAD over the past few days but the salient feature of the daily chart picture remains the big, bullish outside range reversal struck last week. The market has not seen a whole lot of follow through buying interest—so far—to confirm that a major low/reversal is in but the weight of evidence is leaning bullish. Aside from the positive price action which suggests a solid floor on the daily chart around 1.0565/70 now, trend momentum remains bullishly positioned on the daily studies (as it does on the longer-term charts as well). With positive trend momentum so deeply ingrained in the market, we continue to see limited scope for USD/CAD weakness near-term.
USD/CAD Levels
The 20 DMA is 1.0587, the 50 DMA is 1.0480 and the 200 DMA 1.0347. RSI (14) 64.44. Supports are ascending from 1.0464, 1.0485, 1.0516, 1.0552, 1.0586, 1.0670, 1.0708, 1.0754 and 1.0804.