Forex: USD/CAD erases intraday losses
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USD/CAD
FXstreet.com (Córdoba) - The USDCAD bounced sharply from a 3-week low as OECD bullish remarks on Canada were offset by concerns over the US fiscal cliff. USDCAD rose over 40 pips within the last hours and turned positive for the day as risk aversion sent investors seeking the USD refuge.
At time of writing, USDCAD is quoting at the 0.9930 zone, virtually unchanged since opening, having hit a high of 0.9945 in recent dealings.
"A clear break below 0.99 would be a seen as a break below the trendline as well. However the general market direction is sideways since October, so the break of the trendline is not that bearish, that is until we can break the November/October lows by clearing below 0.9870", says Fan Yang, analyst at FXTimes. "This break can expose the origin of the trendline, which is the September low at 0.9631".
"Without break below 0.9870, the market simply went from bullish to sideways, and has a chance to retrace back toward the middle of the range, around the 0.9950 pivot", the analyst adds. "A clear break above 0.9950 takes away the bearish bias".
At time of writing, USDCAD is quoting at the 0.9930 zone, virtually unchanged since opening, having hit a high of 0.9945 in recent dealings.
"A clear break below 0.99 would be a seen as a break below the trendline as well. However the general market direction is sideways since October, so the break of the trendline is not that bearish, that is until we can break the November/October lows by clearing below 0.9870", says Fan Yang, analyst at FXTimes. "This break can expose the origin of the trendline, which is the September low at 0.9631".
"Without break below 0.9870, the market simply went from bullish to sideways, and has a chance to retrace back toward the middle of the range, around the 0.9950 pivot", the analyst adds. "A clear break above 0.9950 takes away the bearish bias".
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