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14 Aug 2013
Flash: USD/CAD eyes two big figure move higher – TD Securities
FXstreet.com (New York) - In terms of macro event risks for USD/CAD today, there is a lull in the otherwise busy release schedule for US data this week. US PPI was the only noteworthy piece of US data that we’ll get today, suggests the TD Securities Team.
Key quotes
“These figures will not be significant for markets, and we don’t expect much currency reaction. More market focus should be placed on St. Louis Fed President Bullard’s appearance this afternoon, particularly after comments earlier this month suggesting more data evidence is necessary before tapering should commence.”
“On the charts, USD/CAD has continued its grind higher from the start of the week, but remains within the broader 1.0250/1.0445 range formed through late July/early August.”
“We are still biased toward seeing this as a basing formation that precedes a move higher, and while it may be too early to conclude, the fact that the 6-hour chart appears to be sketching the right shoulder of a head and shoulders continuation pattern reinforces the bullish view. It also suggests that with a completion of this pattern, a decisive break of 1.0445/50 would target a two big figure move higher.”
Key quotes
“These figures will not be significant for markets, and we don’t expect much currency reaction. More market focus should be placed on St. Louis Fed President Bullard’s appearance this afternoon, particularly after comments earlier this month suggesting more data evidence is necessary before tapering should commence.”
“On the charts, USD/CAD has continued its grind higher from the start of the week, but remains within the broader 1.0250/1.0445 range formed through late July/early August.”
“We are still biased toward seeing this as a basing formation that precedes a move higher, and while it may be too early to conclude, the fact that the 6-hour chart appears to be sketching the right shoulder of a head and shoulders continuation pattern reinforces the bullish view. It also suggests that with a completion of this pattern, a decisive break of 1.0445/50 would target a two big figure move higher.”