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5 May 2015
USD/CAD: Buy on dips opportunity at 1.20 the figure?
FXStreet (Guatemala) - USD/CAD is trading at 1.2029 currently and moving to the downside again with a low at 1.2000 and high 1.2133.
The Canadian dollar has been bid across the board while USD/CAD fails to par last week's highs and is pulling back on the 1.20 handle. Oil is making highs for 2015 and has pierced the resistance set on 16th Dec 2014. The pair is edging down towards 1.20 the figure but analyst at TD Securities feel that near-term pressure should ease nearer the figure. "Resistance is 1.2135/40 and we think funds would turn higher fairly quickly above there."
The analyst at TD securities explained that USD/CAD is in the process of retesting last week’s low though said they are not at all certain that near-term weakness can extend much, if at all, below the 1.20 line. "We still rather think the medium-term (weekly) chart implies a major low formed last week in the low 1.19 area—right around where we expected USD losses to stall after the break under 1.2360 support—and right on retracement support (38.2% of the 1.06/1.28 rally)."
The Canadian dollar has been bid across the board while USD/CAD fails to par last week's highs and is pulling back on the 1.20 handle. Oil is making highs for 2015 and has pierced the resistance set on 16th Dec 2014. The pair is edging down towards 1.20 the figure but analyst at TD Securities feel that near-term pressure should ease nearer the figure. "Resistance is 1.2135/40 and we think funds would turn higher fairly quickly above there."
The analyst at TD securities explained that USD/CAD is in the process of retesting last week’s low though said they are not at all certain that near-term weakness can extend much, if at all, below the 1.20 line. "We still rather think the medium-term (weekly) chart implies a major low formed last week in the low 1.19 area—right around where we expected USD losses to stall after the break under 1.2360 support—and right on retracement support (38.2% of the 1.06/1.28 rally)."