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17 Jul 2013
Flash: CAD crosses show signs of firming – TD Securities
FXstreet.com (New York) - According to the TD Securities Team, “The USD/CAD is delicately positioned – having moved back to the mid-point of the bull trend channel and tested the 40-day MA, there is some evidence to suggest that the USD/CAD rally retains a decent degree of underlying momentum overall.”
However, price action suggests that the correction from the 1.06+ area may not yet be complete. “We remain USD bullish in a broader sense but we are finding it hard to rule out scope for more short-term losses for the USD from here.” the team adds.
Meanwhile, the EUR/CAD has firmed back through the 1.37 area following last week’s stalling downside move around 1.3440/50. “We think the market set an important medium-term peak just above 1.38 through late June so we remain more negative on the outlook while the peak remains intact. Renewed gains this week so far may not be sustainable but price action warrants attention as the move back above the short-term moving averages implies a bit more underlying strength here after having found support at the 50% retracement of the May/June rally.”
However, price action suggests that the correction from the 1.06+ area may not yet be complete. “We remain USD bullish in a broader sense but we are finding it hard to rule out scope for more short-term losses for the USD from here.” the team adds.
Meanwhile, the EUR/CAD has firmed back through the 1.37 area following last week’s stalling downside move around 1.3440/50. “We think the market set an important medium-term peak just above 1.38 through late June so we remain more negative on the outlook while the peak remains intact. Renewed gains this week so far may not be sustainable but price action warrants attention as the move back above the short-term moving averages implies a bit more underlying strength here after having found support at the 50% retracement of the May/June rally.”