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20 Nov 2014
USD/CAD: No momentum to suggest break higher imminent - TDS
FXStreet (Bali) - According to TDS FX Strategists, USD/CAD broader uptrend remains intact but there is no momentum on shorter-term to suggest a break higher is imminent.
Key Quotes
"After rebounding from support at 1.1250/60 yesterday, short-term trend momentum is positive, suggesting that the funds may continue to pressure resistance in the mid/upper 1.13s near-term."
"But the overall message from the charts is quite mixed looking across the short, medium and longer-term timeframes and we still think the overall tone here is consolidative. Funds may struggle to break significantly higher—or lower—for the moment."
"The daily chart picture tells a similar story; USDCAD is consolidating between support in the 1.1240 area—trend and 40-day MA support—and resistance at 1.1380 (potential bull flag)."
"The broader trend higher remains intact but there is no momentum on the shorter-term studies to suggest that a break higher is imminent. We still favour looking to buy USD dips."
Key Quotes
"After rebounding from support at 1.1250/60 yesterday, short-term trend momentum is positive, suggesting that the funds may continue to pressure resistance in the mid/upper 1.13s near-term."
"But the overall message from the charts is quite mixed looking across the short, medium and longer-term timeframes and we still think the overall tone here is consolidative. Funds may struggle to break significantly higher—or lower—for the moment."
"The daily chart picture tells a similar story; USDCAD is consolidating between support in the 1.1240 area—trend and 40-day MA support—and resistance at 1.1380 (potential bull flag)."
"The broader trend higher remains intact but there is no momentum on the shorter-term studies to suggest that a break higher is imminent. We still favour looking to buy USD dips."