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7 May 2013
Forex: USD/CAD hovering over 1.0050/55
FXstreet.com (Barcelona) - The Canadian dollar is gaining ground against its neighbour on Tuesday, orbiting around the mid 1.0000s as markets remains tilted towards the risk appetite.
According to FX Strategists G.Moore and S.Osborne at TD Securities, the recent decline eclipses their bullish perspective on the cross after last week’s rebound from 1.0052. “Just how much more downside potential there is here in a broader sense is not clear though and we still rather think the low/mid 1.0000s will continue to provide support for the USD, ahead of the 200-day MA (0.9989). Ultimately, price action seen over the past few weeks may still be seen as part of a longer-term basing move (we remain long-term USD/CAD bulls)”, concluded the experts.
At the moment, the cross is down 0.18% at 1.0049 facing the next support at 1.0017 (61.8% of 0.9815-1.0343) followed by 0.9995 (high Feb.5&7) and finally 0.9971 (low Feb.8).
On the flip side, a break above 1.0083 (high May 7) would expose the psychological level at 1.0100 and then 1.0214 (high Apr.26).
According to FX Strategists G.Moore and S.Osborne at TD Securities, the recent decline eclipses their bullish perspective on the cross after last week’s rebound from 1.0052. “Just how much more downside potential there is here in a broader sense is not clear though and we still rather think the low/mid 1.0000s will continue to provide support for the USD, ahead of the 200-day MA (0.9989). Ultimately, price action seen over the past few weeks may still be seen as part of a longer-term basing move (we remain long-term USD/CAD bulls)”, concluded the experts.
At the moment, the cross is down 0.18% at 1.0049 facing the next support at 1.0017 (61.8% of 0.9815-1.0343) followed by 0.9995 (high Feb.5&7) and finally 0.9971 (low Feb.8).
On the flip side, a break above 1.0083 (high May 7) would expose the psychological level at 1.0100 and then 1.0214 (high Apr.26).