“The short-term rally seems well-underpinned, on the basis of the bullishly-oriented DMI oscillator, so we rather think that losses should remain relatively shallow intraday. Weakness below 1.0045 does, however, suggest the risk of a modestly deeper pullback in the next day or two. For the moment, we remain constructive and look at modest USD weakness as a buying opportunity still”, explained the FX research team at TD Securities.
At the moment, USD/CAD is losing 0.24% at 1.0024 facing the next support at 0.9995 (MA10d) ahead of 0.9992 (MA200d) and finally 0.9971 (low Feb.8).
On the upside, a breakout of 1.0101 (highs Jan.25/28) would expose 1.0105 (Upper Bollinger) and 1.0106 (high Jul.27).