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13 Jun 2013
Flash: USD/CAD, sustained weakness below 1.0170/75 needed - TDS
FXstreet.com (Barcelona) - The USD/CAD market may continue to range trade, albeit with a soft bias, for the moment, says Shaun Osborne, Chief FX Strategist at TDS.
"We are disappointed with the short-term slide in USD/CAD but we do not think the weakness in price action in the past couple
of weeks detracts (too much, at the moment) from the broader, positive view we have for this market" Osborne notes.
The Strategist believes that sustained weakness below 1.0170/75 should see further downside towards 1.0110 (76.4% retracement support from the 1.00/1.04 rally), however, Osborne notes a lack of convection at the moment.
Osbrone adds: "A weak close this week will keep the near-term tone defensive for the USD but only a sustained push below 1.00 at this point (i.e. setting a new low) would imply the prospect of more sustained weakness."
"We are disappointed with the short-term slide in USD/CAD but we do not think the weakness in price action in the past couple
of weeks detracts (too much, at the moment) from the broader, positive view we have for this market" Osborne notes.
The Strategist believes that sustained weakness below 1.0170/75 should see further downside towards 1.0110 (76.4% retracement support from the 1.00/1.04 rally), however, Osborne notes a lack of convection at the moment.
Osbrone adds: "A weak close this week will keep the near-term tone defensive for the USD but only a sustained push below 1.00 at this point (i.e. setting a new low) would imply the prospect of more sustained weakness."