16 Jul 2014
USD/CAD looks constructive, a more complex bull reversal? - TDS
FXStreet (Bali) - In view of TDS FX Team, the technical picture in USD/CAD remains constructive.
Key Quotes
"We remain constructive on the outlook for USDCAD from a technical perspective. The market has nearly reached the 1.0766
measured move target we noted here yesterday (based on a minor double bottom formation that was triggered Friday). Strong price action this morning so far suggests that 1.0766 and a little more is very reachable in the near-term for funds."
"Short-term trend momentum is positive and the limited correction in the market since last week’s surge higher suggests willing buyers on modest dips. We look for firm support towards the 1.0725 are from here."
"New cycle highs this morning are only minor in scale but are very important nonetheless as we look for confirming price action to underpin last week’s bullish (daily and weekly) reversal signals."
"We think USDCAD price action signaled a strong rejection of the low 1.06 area via a bullish outside range day Friday and a more complex bull reversal signal on the weekly charts (bullish “morning star” pattern). The low for the extended correction in funds from the 1.1277 high looks to be in.
"With CAD positioning/sentiment more neutral now, we think the stage is set for a rebound in funds. This is not a slam dunk situation—the underlying momentum on the longer-term charts is still negative. But a push through resistance in the 1.0820/30 area would be a very bullish signal from here we feel."
Key Quotes
"We remain constructive on the outlook for USDCAD from a technical perspective. The market has nearly reached the 1.0766
measured move target we noted here yesterday (based on a minor double bottom formation that was triggered Friday). Strong price action this morning so far suggests that 1.0766 and a little more is very reachable in the near-term for funds."
"Short-term trend momentum is positive and the limited correction in the market since last week’s surge higher suggests willing buyers on modest dips. We look for firm support towards the 1.0725 are from here."
"New cycle highs this morning are only minor in scale but are very important nonetheless as we look for confirming price action to underpin last week’s bullish (daily and weekly) reversal signals."
"We think USDCAD price action signaled a strong rejection of the low 1.06 area via a bullish outside range day Friday and a more complex bull reversal signal on the weekly charts (bullish “morning star” pattern). The low for the extended correction in funds from the 1.1277 high looks to be in.
"With CAD positioning/sentiment more neutral now, we think the stage is set for a rebound in funds. This is not a slam dunk situation—the underlying momentum on the longer-term charts is still negative. But a push through resistance in the 1.0820/30 area would be a very bullish signal from here we feel."