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31 Mar 2014
USD/CAD battling with net losses/gains
FXStreet (Guatemala) - USD/CAD has run up on the session to meet supply ahead of 1.1060 and failing, so far, to recoup losses on the start of the week.
USD/CAD bulls are being fended off at levels that if breached would open up way for a net gain on the start of the week / end of month and Q1.
CAD Shorts Halved On Recent Upbeat Data
Strategists at Rabobank noted that CAD shorts more than halved on better economic data, while also saying, “The USD recovered a little poise last week following the more hawkish than expected comments from Fed Chair Yellen. However, speculators remain short. The previous week USD shorts rose to their highest level since March 2011”.
USD/CAD Eye's for 1.1110/40
Strategists at TD Securities explained that USD/CAD’s recovery from last Friday’s low just above 1.10 has stumbled at the first technical hurdle, even if it is a pretty high one on the short-term charts. “The initial retracement resistance of the 1.1277/1.1002 decline at 1.1067 converged with steep trend channel resistance through the overnight market, rebuffing the USD’s rebound. We still view the 1.10 area as a likely base for funds from here but there are still some pretty strong headwinds blowing against the USD at the moment which may limit the market’s powers of recovery for now. Gains through 1.1065/70 should see 1.1110/40 tested”.
USD/CAD Levels
The 20 DMA is 1.1111, the 50 DMA is 1.1084 and the 200 DMA is 1.0627. RSI (14) hourly reads 45.70. Supports are ascending from 1.0955, 1.0970, 1.1001 and 1.1024. Spot is 1.1046 while resistances are 1.1078, 1.1106 1.1122 and 1.1170.
USD/CAD bulls are being fended off at levels that if breached would open up way for a net gain on the start of the week / end of month and Q1.
CAD Shorts Halved On Recent Upbeat Data
Strategists at Rabobank noted that CAD shorts more than halved on better economic data, while also saying, “The USD recovered a little poise last week following the more hawkish than expected comments from Fed Chair Yellen. However, speculators remain short. The previous week USD shorts rose to their highest level since March 2011”.
USD/CAD Eye's for 1.1110/40
Strategists at TD Securities explained that USD/CAD’s recovery from last Friday’s low just above 1.10 has stumbled at the first technical hurdle, even if it is a pretty high one on the short-term charts. “The initial retracement resistance of the 1.1277/1.1002 decline at 1.1067 converged with steep trend channel resistance through the overnight market, rebuffing the USD’s rebound. We still view the 1.10 area as a likely base for funds from here but there are still some pretty strong headwinds blowing against the USD at the moment which may limit the market’s powers of recovery for now. Gains through 1.1065/70 should see 1.1110/40 tested”.
USD/CAD Levels
The 20 DMA is 1.1111, the 50 DMA is 1.1084 and the 200 DMA is 1.0627. RSI (14) hourly reads 45.70. Supports are ascending from 1.0955, 1.0970, 1.1001 and 1.1024. Spot is 1.1046 while resistances are 1.1078, 1.1106 1.1122 and 1.1170.