The buck mat be tightly ranging around other currencies but America mkII is showing signs of a deeper concern. The pair has been grinding higher since the September FOMC shock and is looking for a break into 1.0400. Corporate offers have been in place at 1.0405 and they are slowly getting chewed through but there’s talk that some offers have been pulled from the table. Offers are still in place around 1.0420 with stops seen through 1.0440.
Bids have been moved up to 1.0330/40 with heavier ones at 1.0300/10
We’ve broken up through the 55 and 100 dma’s at 1.0363/66 and they became support this morning after the first push higher. We never got another look in at the Sep 2012 support line and 200 dma after the FOMC move and a minor support line has developed just above that area.
USD/CAD daily chart 09 10 2013
The broken May support line may have a role to play if we break into 1.0400 and that comes in at 1.0439. I was interested in selling up at the top last time but my target zone didn’t arrive. I’ll be keeping an eye if we get nearer 1.0500 and will pay particular attention to the previous highs at 1.0560/65 and and 1.0605.