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20 Sep 2013
USD/CAD capped by 1.0300
FXstreet.com (Edinburgh) -The USD recovery is taking the USD/CAD to post gains for the second consecutive session on Friday, after bottoming out in sub 1.0200 levels post-Fed.
USD/CAD bounces off 2-month lows
The dovish tone from the FOMC meeting on Wednesday hammered the world’s reserve, pushing the pair off the cliff to levels below 1.0200, last seen in mid June. In the opinion of G.Moore and S.Osborne, FX Strategists at TD Securities, “The market is struggling a little to extend the move today but the broader pattern of trade is positive, with the weekly chart showing a large “hammer” low/reversal signal developing around the 40-week MA (200-day equivalent). This is positive. Gains through the upper 1.03 zone in the coming week would be technically positive”.
USD/CAD key levels
The pair is now advancing 0.25% at 1.0291 with the next resistance at 1.0301 (high Sep.20) followed by 1.0310 (MA10d) and then 1.0334 (high Sep.17). On the flip side, a breakdown of 1.0263 (low Sep.20) would open the door to 1.0215 (MA200d) and then 1.0182 (low Sep.19).
USD/CAD bounces off 2-month lows
The dovish tone from the FOMC meeting on Wednesday hammered the world’s reserve, pushing the pair off the cliff to levels below 1.0200, last seen in mid June. In the opinion of G.Moore and S.Osborne, FX Strategists at TD Securities, “The market is struggling a little to extend the move today but the broader pattern of trade is positive, with the weekly chart showing a large “hammer” low/reversal signal developing around the 40-week MA (200-day equivalent). This is positive. Gains through the upper 1.03 zone in the coming week would be technically positive”.
USD/CAD key levels
The pair is now advancing 0.25% at 1.0291 with the next resistance at 1.0301 (high Sep.20) followed by 1.0310 (MA10d) and then 1.0334 (high Sep.17). On the flip side, a breakdown of 1.0263 (low Sep.20) would open the door to 1.0215 (MA200d) and then 1.0182 (low Sep.19).