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6 Aug 2013
USD/CAD capped around 1.0390
FXstreet.com (Edinburgh) -The USD/CAD is trimming yesterday’s losses, although the pair is unable to follow through recent highs in the 1.0390-1.0400 band so far.
USD/CAD up despite weaker USD
The softer tone in the USD seems to be no impediment for the pair to trade in the positive territory on Tuesday. Today’s price action is also ignoring the better-than-expected trade balance in the Canadian economy, shrinking to $0.47 billion in June from May’s $0.78 billion. Strategists G.Moore and S.Osborne at TD Securities suggested, “Weekly price action supports the impression of an important low forming from a technical perspective. Last week’s new low, higher high and higher close (relative to the prior week) formed a bullish outside range/key reversal week. With the USD rally occurring around weekly trend support, the basis for a renewed, medium-term rally seems to be in place”.
USD/CAD key levels
The pair is now advancing 0.11% at 1.0372 facing the next hurdle at 1.0391 (daily cloud top) followed by 1.0405 (MA30d) and then 1.0445 (high Jul.17). On the flip side, a breakdown of 1.0348 (low Aug.6) would expose 1.0324 (Tenkan line) and finally 1.0245 (low Jul.31).
USD/CAD up despite weaker USD
The softer tone in the USD seems to be no impediment for the pair to trade in the positive territory on Tuesday. Today’s price action is also ignoring the better-than-expected trade balance in the Canadian economy, shrinking to $0.47 billion in June from May’s $0.78 billion. Strategists G.Moore and S.Osborne at TD Securities suggested, “Weekly price action supports the impression of an important low forming from a technical perspective. Last week’s new low, higher high and higher close (relative to the prior week) formed a bullish outside range/key reversal week. With the USD rally occurring around weekly trend support, the basis for a renewed, medium-term rally seems to be in place”.
USD/CAD key levels
The pair is now advancing 0.11% at 1.0372 facing the next hurdle at 1.0391 (daily cloud top) followed by 1.0405 (MA30d) and then 1.0445 (high Jul.17). On the flip side, a breakdown of 1.0348 (low Aug.6) would expose 1.0324 (Tenkan line) and finally 1.0245 (low Jul.31).