6 Jun 2013
USD/CAD bouncing off lows
FXstreet.com (Barcelona) - After bottoming out in 3-week lows in sub 1.0200 levels, the USD is attempting a tepid rebound to the mid 1.02s so far.
The USD is falling sharply on Thursday after the ECB left its policy unchanged, allaying concerns of negative rates or further easing. “From a broader point of view, the long-term charts do not remove the risk of renewed weakness in USD/CAD entirely but there is still strong, underlying bull trend momentum evident in this market, which limits downside risks and suggests that the overall trend remains firmer”, suggested G.Moore and S.Osborne, FX Strategists at TD Securities.
The pair is now losing 0.86% at 1.0255 facing the next support at 1.0251 (low May 22) and then 1.0237 (low May 21). On the upside, a breakout of 1.0389 (high Jun.3) would target 1.0421 (high May 29) en route to 1.0446 (2012 June high).
The USD is falling sharply on Thursday after the ECB left its policy unchanged, allaying concerns of negative rates or further easing. “From a broader point of view, the long-term charts do not remove the risk of renewed weakness in USD/CAD entirely but there is still strong, underlying bull trend momentum evident in this market, which limits downside risks and suggests that the overall trend remains firmer”, suggested G.Moore and S.Osborne, FX Strategists at TD Securities.
The pair is now losing 0.86% at 1.0255 facing the next support at 1.0251 (low May 22) and then 1.0237 (low May 21). On the upside, a breakout of 1.0389 (high Jun.3) would target 1.0421 (high May 29) en route to 1.0446 (2012 June high).