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25 Feb 2015
USD/CAD downside move towards upper 1.22 levels possible – TDS
FXStreet (Barcelona) - Shaun Osborne, Chief FX Strategist at TD Securities, views the bearish outside range trade of USD/CAD yesterday might lead the pair to register further losses towards upper 1.23s and even extend to upper 1.22 levels.
Key Quotes
“USDCAD had looked to be struggling a little in the past couple of sessions on the charts and the technical headwinds are blowing a little harder today after a very soft close for USDCAD yesterday.”
“A bearish outside range session yesterday is a big technical blow to the USD and, along with this morning’s drift under the 28-day MA, points to a test of support in the upper 1.23s and an extension to the upper 1.22s (40-day MA).”
“We are not too surprised by the recent turn of events in spot as seasonal patterns turn a little more adverse for USDCAD in the next few weeks; April in particular has been one of the worst months for the USD consistently in the past few years.”
“All told, developments suggest that downside risks for USDCAD are rising—especially if crude oil continues to ignore bearish inventory data (last night’s API data showed another large build, suggesting no scope for a significant rebound in price at this point).”
Key Quotes
“USDCAD had looked to be struggling a little in the past couple of sessions on the charts and the technical headwinds are blowing a little harder today after a very soft close for USDCAD yesterday.”
“A bearish outside range session yesterday is a big technical blow to the USD and, along with this morning’s drift under the 28-day MA, points to a test of support in the upper 1.23s and an extension to the upper 1.22s (40-day MA).”
“We are not too surprised by the recent turn of events in spot as seasonal patterns turn a little more adverse for USDCAD in the next few weeks; April in particular has been one of the worst months for the USD consistently in the past few years.”
“All told, developments suggest that downside risks for USDCAD are rising—especially if crude oil continues to ignore bearish inventory data (last night’s API data showed another large build, suggesting no scope for a significant rebound in price at this point).”