16 Dec 2014
USD/CAD: resistance here, buy on dips
FXStreet (Guatemala) - USD/CAD is trading at 1.1630, down -0.22% on the day, having posted a daily high at 1.1675 and low at 1.1606.
USD/CAD has been capped so far at the highs at 1.1675 but the price of oil is a dominant factor and continues to print fresh lows on both sides of the Atlantic. WTI has been down to $53.59 and Brent Crude down to $58.49.
The upper channels resistance may take some time to penetrate and a period of consolidation may play out should the fundamentals simply continue to weigh on the Canadian dollar and in the absence of positives elsewhere. However, analyst at TD Securities explained that they are looking for limited weakness from here. “(Mid/upper 1.15s but we do not exclude the risk of a drop back to 1.15 in the event of a more sustained consolidation)”.
“Short, medium and long-term trend momentum studies are bullishly aligned and that usually means minor counter-trend corrections and limited opportunities to jump on before the trend resumes. Look to buy dips”.
USD/CAD has been capped so far at the highs at 1.1675 but the price of oil is a dominant factor and continues to print fresh lows on both sides of the Atlantic. WTI has been down to $53.59 and Brent Crude down to $58.49.
The upper channels resistance may take some time to penetrate and a period of consolidation may play out should the fundamentals simply continue to weigh on the Canadian dollar and in the absence of positives elsewhere. However, analyst at TD Securities explained that they are looking for limited weakness from here. “(Mid/upper 1.15s but we do not exclude the risk of a drop back to 1.15 in the event of a more sustained consolidation)”.
“Short, medium and long-term trend momentum studies are bullishly aligned and that usually means minor counter-trend corrections and limited opportunities to jump on before the trend resumes. Look to buy dips”.