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27 Mar 2014
USD/CAD falls to lows since March 7 at 1.1017; a correction?
FXStreet (San Francisco) - The US dollar is extending its decline against its Canadian counterpart as the USD/CAD has just tested lows since March 7 at 1.1017, following an 85 pips bearish movement.
The USD/CAD is falling for fifth day in a row. Since March 20 high of 1.1277, the pair lost around 255 pips to today's minimum of 1.1017. Picture remains slightly bearish according to the FXStreet trend index in the 1-day chart. CCI and Momentum are pointing to the south while the MACD and Stochastic are neutral.
USD/CAD sentiment
TD Securities analyst team affirms that the current movement looks 'like a corrective movement'. "The sell-off in funds is taking the market back deeper into last week’s rally territory which makes it a little harder to characterize the drop as merely corrective. But we still have not seen enough of a drop to shift our technical interpretation towards a full out reversal. This still looks like a corrective move—albeit a pretty severe one—to us."
If the pair consolidates levels below the March 18 low of 1.1025, the USD/CAD would face supports at 1.1000, 1.0975 and 1.0955. On the upside, resistances come at 1.1050, 1.1080 and 1.1100.
The USD/CAD is falling for fifth day in a row. Since March 20 high of 1.1277, the pair lost around 255 pips to today's minimum of 1.1017. Picture remains slightly bearish according to the FXStreet trend index in the 1-day chart. CCI and Momentum are pointing to the south while the MACD and Stochastic are neutral.
USD/CAD sentiment
TD Securities analyst team affirms that the current movement looks 'like a corrective movement'. "The sell-off in funds is taking the market back deeper into last week’s rally territory which makes it a little harder to characterize the drop as merely corrective. But we still have not seen enough of a drop to shift our technical interpretation towards a full out reversal. This still looks like a corrective move—albeit a pretty severe one—to us."
If the pair consolidates levels below the March 18 low of 1.1025, the USD/CAD would face supports at 1.1000, 1.0975 and 1.0955. On the upside, resistances come at 1.1050, 1.1080 and 1.1100.