Back
19 Sep 2013
USD/CAD bounced from below 1.0200
FXstreet.com (Barcelona) - USD/CAD dropped from 1.0320 to reach a low of 1.0181 before finding bids back into the 1.0200 handle to where the pair now sits in the 1.0230 region.
Teams at TD Securities said “USD/CAD looked oversold on the short-term charts earlier in the week and that position has been exacerbated by the broader USD sell-off after the FOMC. USD/CAD looks fundamentally under-valued in our opinion but, with short-term (2y) Canada-US spreads moving above 90bps (and a strengthening influence on spot, our correlation studies show), scope for a USD/CAD bounce will be limited”.
USD/CAD technically
The teams continued and said “Technically, the position on the longer-term charts looks weak for the USD below trend and 40-week /200-day MA 1.0220/30 support. The 1.0250 area now represents near-term resistance and weakness below the low 1.02s suggests a dip to 1.01 is a risk”.
Teams at TD Securities said “USD/CAD looked oversold on the short-term charts earlier in the week and that position has been exacerbated by the broader USD sell-off after the FOMC. USD/CAD looks fundamentally under-valued in our opinion but, with short-term (2y) Canada-US spreads moving above 90bps (and a strengthening influence on spot, our correlation studies show), scope for a USD/CAD bounce will be limited”.
USD/CAD technically
The teams continued and said “Technically, the position on the longer-term charts looks weak for the USD below trend and 40-week /200-day MA 1.0220/30 support. The 1.0250 area now represents near-term resistance and weakness below the low 1.02s suggests a dip to 1.01 is a risk”.