Flash: USD/CAD retains soft undertone but not bearish – TD Securities

FXstreet.com (New York) - The TD Securities team analyzes the short-term outlook of the USD/CAD.

Key quotes

“The USD/CAD retains a soft undertone but prospects are not obviously bearish at this point, we fee. On the one hand, the USD’s drop below the base of the consolidation (bear) wedge last week suggests more downside movement ahead.”

“On the other hand, the market has held support around 1.0330 and oscillator signals suggest the USD is oversold on a number of fronts now. This may make it harder for the market to extend the move down without good cause. We look for support to hold in the low 1.03 area for now.”

Finally, “Above 1.0440 (which looks distant at the moment) should see the USD rebound sharply.”

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