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USD/CAD is attempting the downside on 1.1080

FXStreet (Guatemala) - USD/CAD has caught some demand in the 1.1070’s after drifting from above the 1.1120’s.

USD/CAD has dropped below the sideways channels support at the top of the rally from Fridays move post Non Farm Payrolls. Strategists at TD Securities explained that the short-term USD/CAD charts are not telling us much we don’t already know. “The USD remains capped below short-term resistance in the low 1.11 area and, after a firmer start to the North American session, USD/CAD has slipped modestly back towards support in the upper 1.10 zone. We see limited downside for the market at the moment. The short-term trend is positive and gains through the 1.1135 area might trigger a broader squeeze higher in the USD in the next day or so”.

USD/CAD Levels

The 20 DMA is 1.1045, the 50 DMA is 1.0973 and the 200 DMA is 1.0558. RSI (14) reads 29.99. Supports are ascending from 1.0955, 1.0980,1.1046 and 1.1071/80. Spot is 1.1092 while resistances are 1.1148, 1.1160, 1.1196 and 1.1230.

Flash: - TDS

Strategists at TD Securities explained that the USD/CAD daily pattern of trade suggests firmer resistance around 1.1140/45 (short-term resistance not above on the 6-hour chart will converge tomorrow) but we think the overall pattern is constructive here too.
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