USD/CAD out of consolidation?
FXstreet.com (London) - USD/CAD has rallied higher on up beat US data and has broken out of the consolidative range of 1.0560 acting as previous resistance.
Meanwhile, strategists at TD Securities said there is little on the domestic front (September Average Weekly Earnings) to drive the CAD so focus will remain on external issues and flows. USD/CAD traded heavily earlier in the week as the market backed off the upper 1.05 area but the lack of downside follow-through suggests the market is consolidating, rather than reversing the mid-November rally. We remain bullish on the near and longer-term outlook for funds (we target 1.06 for end 2013… near-term but we think that minor dips remain a buy.
USD/CAD Levels
The 20 DMA is 1.0468, the 50 DMA is 1.0390 and the 200 DMA is 1.0321. RSI (14) reads 67.50. Supports are ascending from 1.0414, 1.0436, 1.0480, 1.0516, 1.0550. Spot is currently 1.0594 while resistances are 1.0609, 1.0658 and 1.0674.
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Nov 27,2013
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