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27 Feb 2015
USD/CAD: Meeting resistance at 1.2515; mixed outlook
FXStreet (Guatemala) - USD/CAD is currently trading at 1.2507 with a high of 1.2523 and a low of 1.2447.
USD/CAD is up in the 1.25 handle facing resistance at 1.2515 post a decent spike from the 1.2450 region with a good run of US data that has the greenback in positive territory on the closing session of the week. Consumer confidence beat expectations along with GDP coming in impressive and beating the consensus.
However, as analysts at TD Securities explained, conflicting signals in quick succession suggest that the market itself is unsure of the direction in funds here and that absence of direction is reflected in the weak (and weakening) trend momentum signals evident on the short-term charts.
"The set-up here remains potentially positive (bull flag or wedge on the daily chart) but that does not preclude a push back to the 1.22 area from here and we can only get really constructive again on the outlook above 1.2636."
USD/CAD is up in the 1.25 handle facing resistance at 1.2515 post a decent spike from the 1.2450 region with a good run of US data that has the greenback in positive territory on the closing session of the week. Consumer confidence beat expectations along with GDP coming in impressive and beating the consensus.
However, as analysts at TD Securities explained, conflicting signals in quick succession suggest that the market itself is unsure of the direction in funds here and that absence of direction is reflected in the weak (and weakening) trend momentum signals evident on the short-term charts.
"The set-up here remains potentially positive (bull flag or wedge on the daily chart) but that does not preclude a push back to the 1.22 area from here and we can only get really constructive again on the outlook above 1.2636."