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9 Aug 2013
Flash: USD/CAD gains likely to come from slow grind – TD Securities
FXstreet.com (New York) - The TD Securities Team sheds light on the USD/CAD and EUR/CAD outlooks.
Key quotes
“USD/CAD’s bullish key reversal week from last week is battered but (so far) intact. Weekly trend support (1.0277) provides a bit of protection against last week’s 1.0250 low, which has to hold for the bullish signal to remain valid. We still rather think the underlying trend in funds is higher. Gains may be more of a grind than a dynamic move though.”
In terms of the EUR/CAD, “We were not especially enthused by gains through 1.37/1.38 this week but the move up did appear to have solid underpinnings from short/medium/long-term trend momentum signals. That has changed somewhat over the latter part of the week, with losses over the past two days suggesting that the move up has stalled.”
“A clear, bear reversal has not been signaled (yet), however. If support in the mid/upper 1.36 area holds next week and the cross can avoid a big sell off next week, the underlying trend higher may resume.”
Key quotes
“USD/CAD’s bullish key reversal week from last week is battered but (so far) intact. Weekly trend support (1.0277) provides a bit of protection against last week’s 1.0250 low, which has to hold for the bullish signal to remain valid. We still rather think the underlying trend in funds is higher. Gains may be more of a grind than a dynamic move though.”
In terms of the EUR/CAD, “We were not especially enthused by gains through 1.37/1.38 this week but the move up did appear to have solid underpinnings from short/medium/long-term trend momentum signals. That has changed somewhat over the latter part of the week, with losses over the past two days suggesting that the move up has stalled.”
“A clear, bear reversal has not been signaled (yet), however. If support in the mid/upper 1.36 area holds next week and the cross can avoid a big sell off next week, the underlying trend higher may resume.”