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22 Apr 2014
USD/CAD eases from highs
FXStreet (Córdoba) - The USD/CAD lost momentum and pulled back from a 19-day high of 1.1042 scored during the New York session.
The USD/CAD had fallen to a low of 1.0999 in the wake of stronger than expected Canadian wholesales sales, but buyers reappeared at the psychological level attack, sending the pair to a high of 1.1042. However, the dollar failed to sustain gains for long and retreated to currently trade around 1.1015,still 0.06% above its opening price.
USD/CAD outlook
The TD Securities team notes that USD/CAD's daily chart also looks encouraging. "We think the litmus test for the rally remains the 40-day MA at 1.1061. We continue to think that modest USD/CAD gains are helping solidify the rebound from the mid/upper 1.08 area reached earlier in April", they commented. "A solid base seems to be forming now and we expect firm support on dips to 1.0950/1.10 now".
The USD/CAD had fallen to a low of 1.0999 in the wake of stronger than expected Canadian wholesales sales, but buyers reappeared at the psychological level attack, sending the pair to a high of 1.1042. However, the dollar failed to sustain gains for long and retreated to currently trade around 1.1015,still 0.06% above its opening price.
USD/CAD outlook
The TD Securities team notes that USD/CAD's daily chart also looks encouraging. "We think the litmus test for the rally remains the 40-day MA at 1.1061. We continue to think that modest USD/CAD gains are helping solidify the rebound from the mid/upper 1.08 area reached earlier in April", they commented. "A solid base seems to be forming now and we expect firm support on dips to 1.0950/1.10 now".