3 Dec 2013
USD/CAD volatility ahead?
FXstreet.com (London) - USD/CAD has been building up into a tight range of consolidation and is looking constructive while the rest of the week holds potential for a break out.
Shaun Osborne, strategist at TD Securities explained this week contains a fair degree of event risk as well with the BoC policy meeting Wednesday and the Canadian and US employment reports at the end of the week. “Volatility seems likely to remain elevated near-term at least...Either spot USD/CAD has a little more room to move up to reflect the generally better bid tone of CAD vol or vol has overshot and will slide back, likely dampening the rally in funds”.
USD/CAD Levels
The 20 DMA is 1.0502, the 50 DMA is 1.0417 and the 200 DMA is 1.0329. RSI (14) reads 54.84. Supports are ascending from 1.0485, 1.0516, 1.0559 and 1.0590. Spot is currently 1.0647, 1.0658, 1.0674, 1.0721 and 1.0745.
Shaun Osborne, strategist at TD Securities explained this week contains a fair degree of event risk as well with the BoC policy meeting Wednesday and the Canadian and US employment reports at the end of the week. “Volatility seems likely to remain elevated near-term at least...Either spot USD/CAD has a little more room to move up to reflect the generally better bid tone of CAD vol or vol has overshot and will slide back, likely dampening the rally in funds”.
USD/CAD Levels
The 20 DMA is 1.0502, the 50 DMA is 1.0417 and the 200 DMA is 1.0329. RSI (14) reads 54.84. Supports are ascending from 1.0485, 1.0516, 1.0559 and 1.0590. Spot is currently 1.0647, 1.0658, 1.0674, 1.0721 and 1.0745.