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11 Feb 2014
USD/CAD technical risks are towards a softer CAD
FXStreet (Guatemala) - USD/CAD has taken a bearish turn post a climb higher from the lows set on Friday when the pair dropped the 1.10 handle and headed towards the mid way point on 1.09. The risk event today for the pair has been Yellen so far, but technically, the pair sets a softer tone for the Canadian dollar.
The new Fed Chair Janet Yellen said in her first semi-annual testimony on monetary policy and the economic outlook to the US Congress that the situation on the labor market had improved but that the economic recovery still had a long way to go, sending the market mixed signals. During her speech, the pair continued on the offer marking a score below 1.1040. Strategists at TD Securities suggested that bearish daily, weekly price signals say that the technical risks are still geared towards a softer USD/CAD. “Although the USD picked up smartly from last week’s sub-1.10 test and the market has relieved its overbought status on the daily oscillators, the USD’s inability to accelerate away from the upper 1.10s (former trend channel ceiling, now support) suggests some ongoing risk of weakness too.
USD/CAD Levels
The 20 DMA is 1.1056, the 50 DMA is 1.0825 and the 200 DMA is 1.0484. RSI (14) reads 51.95. Supports are ascending from 1.0875,1.0905, 1.0953, 1.1018. Spot is 1.1035 while resistances are 1.1123, 1.1138, 1.1174 and 1.1225.
The new Fed Chair Janet Yellen said in her first semi-annual testimony on monetary policy and the economic outlook to the US Congress that the situation on the labor market had improved but that the economic recovery still had a long way to go, sending the market mixed signals. During her speech, the pair continued on the offer marking a score below 1.1040. Strategists at TD Securities suggested that bearish daily, weekly price signals say that the technical risks are still geared towards a softer USD/CAD. “Although the USD picked up smartly from last week’s sub-1.10 test and the market has relieved its overbought status on the daily oscillators, the USD’s inability to accelerate away from the upper 1.10s (former trend channel ceiling, now support) suggests some ongoing risk of weakness too.
USD/CAD Levels
The 20 DMA is 1.1056, the 50 DMA is 1.0825 and the 200 DMA is 1.0484. RSI (14) reads 51.95. Supports are ascending from 1.0875,1.0905, 1.0953, 1.1018. Spot is 1.1035 while resistances are 1.1123, 1.1138, 1.1174 and 1.1225.