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26 Feb 2014
USD/CAD attempting the 1.11 handle again
FXStreet (Guatemala) - USD/CAD reached a high of 1.1118 before dropping back below the handle into the 1.1080’s. The pair is now attempting the handle again.
The US new home sales rose 9.6% to 468,000 annual rate and these were much stronger than expected. The dollar is firmer across the board. Strategists at TD Securities explained that they are overall bullish. “USD/CAD has retraced a little less than 50% of last week’s sharp rally and while ranges are narrow and the market appears to lack any degree of commitment at the moment, we still think the underlying trend in funds is bullish. A correction after such a large one-day rally is not unusual and merely reflects the market pausing for breath or consolidating after what was one of the biggest one-day up moves in the USD since late 2011. We expect firm support at 1.1045/50 from here”.
USD/CAD Levels
The 20 DMA is 1.1060, the 50 DMA is 1.0914 and the 200 DMA is 1.0529. RSI (14) reads 66.14. Supports are ascending from 1.0911, 1.0953, 1.1000, 1.1025. Spot is 1.1102 while resistances are 1.1196, 1.1225, 1.1300 and 1.1349.
The US new home sales rose 9.6% to 468,000 annual rate and these were much stronger than expected. The dollar is firmer across the board. Strategists at TD Securities explained that they are overall bullish. “USD/CAD has retraced a little less than 50% of last week’s sharp rally and while ranges are narrow and the market appears to lack any degree of commitment at the moment, we still think the underlying trend in funds is bullish. A correction after such a large one-day rally is not unusual and merely reflects the market pausing for breath or consolidating after what was one of the biggest one-day up moves in the USD since late 2011. We expect firm support at 1.1045/50 from here”.
USD/CAD Levels
The 20 DMA is 1.1060, the 50 DMA is 1.0914 and the 200 DMA is 1.0529. RSI (14) reads 66.14. Supports are ascending from 1.0911, 1.0953, 1.1000, 1.1025. Spot is 1.1102 while resistances are 1.1196, 1.1225, 1.1300 and 1.1349.