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29 May 2013
Flash: USD/CAD trend higher remains intact - TD Securities
FXstreet.com (Córdoba) - The USD/CAD trend higher remains intact but it is under a little pressure, according to the TD Securities team.
Given that the USD pushed to a new cycle high above 1.04 earlier before easing back through the early part of the North American session, "in the short-run, price action looks a little soft but there is no obvious bearish reversal pattern unfolding here and we still rather think that the broader trend remains higher", says TD.
"Short-term trend momentum has softened but remains bullishly-oriented for the USD. Longer-term (daily and weekly) trend studies are still bullishly-aligned for the USD", analysts added. "This should mean limited USD weakness below 1.0365 trend channel support— with 1.0340/60 likely to provide good support initially and stronger support around 1.0300/10. The near-term mood only gets darker below 1.03 right now".
Given that the USD pushed to a new cycle high above 1.04 earlier before easing back through the early part of the North American session, "in the short-run, price action looks a little soft but there is no obvious bearish reversal pattern unfolding here and we still rather think that the broader trend remains higher", says TD.
"Short-term trend momentum has softened but remains bullishly-oriented for the USD. Longer-term (daily and weekly) trend studies are still bullishly-aligned for the USD", analysts added. "This should mean limited USD weakness below 1.0365 trend channel support— with 1.0340/60 likely to provide good support initially and stronger support around 1.0300/10. The near-term mood only gets darker below 1.03 right now".