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USD/CAD 1.04 handle to hold up?

FXstreet.com (London) - USD/CAD has slid slightly on the 1.04 handle having printed a low of 1.0436 from the high 1.0475.

USD/CAD is trading a little softer this morning, as resreach team at TD Securities pointed out, but the short-term trend higher remains intact in their opinion and they continue to view the low 1.04 area as strong, short-term support. “Price action since last night’s push back up towards the 1.05 area has been disappointing but, while 1.0420 holds, we remain constructive. Short-term trend momentum is neutral, favouring range trading and support in the low 1.04 area holding.

USD/CAD price action

TD Securities went onto to say, “USD/CAD price action on the daily chart looks soft but today’s range is holding inside yesterday’s, suggesting consolidation in the broader trend after yesterday’s strong rejection of the 1.0420 support zone (converges with the minor trend channel on the 6-hour chart, above). They think the primary daily trend here is bullish (as is the longer-term trend), with the market carving out a higher highs and higher lows since the mid-September trough. The team said trend momentum is positive on the daily and weekly studies, not aggressively so at this point, but the alignment should support the mild appreciation trend evident at the moment. “We see key short-tem support at 1.0390/00. Major support at 1.0300/10 (200-day MA at 1.0312). Resistance is 1.0500/20”.

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