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19 Sep 2013
USD/CAD “on hold” above 1.0200 ahead of US data
FXstreet.com (Athens)- The USD/CAD is capped by great volatility since the early opening of the Asian trading session, but last couple of hours seems to gather uptrend momentum.
USD/CAD still digests FOMC result; well above 1.0200 ahead of US labor data
The USD/CAD suffered a lot yesterday losing approximately 100 pips on a daily basis, as Bernanke caught off guard not only the traders but many investment banks as well. The vast majority of investment houses despite recent softness in US data had bet on a modest, “lite-tapering” of approximately 10billions per month, but FOMC minutes remind to all of them that the tapering decision is ultimately data dependent. However, ahead of crucial US jobless results that is the first data to come post FOMC era, the USD/CAD sits firmly above 1.0200 key-zone. Traders focusing on the pair, should not forget the heavy positive correlation between the “loonie” and the oil prices.
Technical Outlook and Strategic Bias on USD/CAD
Shaun Osborne, Chief FX strategist from TD Securities, suggests that “USD/CAD is nudging a little higher and nearing a test of minor trend resistance on the hourly chart at 1.0313. Minor moves appear significant in the context of the very narrow ranges that have prevailed since the early week volatility in the market but the bottom line for us remains that the USD looks oversold on the short-term charts at least and is more likely to trade a little higher than extend lower—all else being equal—from here in the near-term. Above 1.0315 or so, the 1.0335 level figures as the next notable resistance point on the short-term chart; after two rejections of the 1.0280/85 area (now support), a push through 1.0335 would trigger a minor double bottom and target 1.0385.”
USD/CAD still digests FOMC result; well above 1.0200 ahead of US labor data
The USD/CAD suffered a lot yesterday losing approximately 100 pips on a daily basis, as Bernanke caught off guard not only the traders but many investment banks as well. The vast majority of investment houses despite recent softness in US data had bet on a modest, “lite-tapering” of approximately 10billions per month, but FOMC minutes remind to all of them that the tapering decision is ultimately data dependent. However, ahead of crucial US jobless results that is the first data to come post FOMC era, the USD/CAD sits firmly above 1.0200 key-zone. Traders focusing on the pair, should not forget the heavy positive correlation between the “loonie” and the oil prices.
Technical Outlook and Strategic Bias on USD/CAD
Shaun Osborne, Chief FX strategist from TD Securities, suggests that “USD/CAD is nudging a little higher and nearing a test of minor trend resistance on the hourly chart at 1.0313. Minor moves appear significant in the context of the very narrow ranges that have prevailed since the early week volatility in the market but the bottom line for us remains that the USD looks oversold on the short-term charts at least and is more likely to trade a little higher than extend lower—all else being equal—from here in the near-term. Above 1.0315 or so, the 1.0335 level figures as the next notable resistance point on the short-term chart; after two rejections of the 1.0280/85 area (now support), a push through 1.0335 would trigger a minor double bottom and target 1.0385.”