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8 Apr 2013
Forex: USD/CAD upside capped around 1.0200
FXstreet.com (Barcelona) - The Canadian dollar is trading on the back foot on Monday, losing ground against its neighbour as the risk-off tone is increasing the demand for the safe haven.
“We do think that the current downtrend is starting to lose some momentum though. So while the risk of further USD weakness remains, given Friday’s topside rejection, losses may not be that great. We rather think that sub-1.01 levels are a buy”, remarked the research team at TD Securities.
As of writing, the cross is up 0.14% at 1.0190 with the next resistance at 1.0204 (MA21d) ahead of 1.0238 (high Mar.25) and finally 1.0265 (high Mar.22).
On the downside, a breach of 1.0160 (MA10d) would clear the way to 1.0123 (low Apr.5) and then 1.0103 (low Apr.4).
“We do think that the current downtrend is starting to lose some momentum though. So while the risk of further USD weakness remains, given Friday’s topside rejection, losses may not be that great. We rather think that sub-1.01 levels are a buy”, remarked the research team at TD Securities.
As of writing, the cross is up 0.14% at 1.0190 with the next resistance at 1.0204 (MA21d) ahead of 1.0238 (high Mar.25) and finally 1.0265 (high Mar.22).
On the downside, a breach of 1.0160 (MA10d) would clear the way to 1.0123 (low Apr.5) and then 1.0103 (low Apr.4).