USDCAD TECHS: Bullish Outlook
- RES 4: 1.3695 High Mar 28
- RES 3: 1.3668 High Apr 28 and key resistance
- RES 2: 1.3640 High May 3
- RES 1: 1.3613 Intraday high
- PRICE: 1.3608 @ 08:06 BST May 25
- SUP 1: 1.3485/1.3404 Low May 23 / 16
- SUP 2: 1.3363/15 Low May 11 / 8
- SUP 3: 1.3302 Low Apr 14 and a key near-term support
- SUP 4: 1.3275 Low Feb 14
USDCAD traded higher yesterday and in the process breached resistance at 1.3568, the May 15 high. The break reinforces short-term bullish conditions and sights are set on resistance at 1.3668, the Apr 28 high and a key level. Clearance of this hurdle would strengthen the case for bulls. On the downside, initial support lies at 1.3485, the May 23 low. A break of 1.3404, the May 16 low, is required to reinstate a bearish threat.
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USDCAD TECHS: Bulls Remains In The Driver’s Seat
- RES 4: .36448 61.8% retracement of the Mar 10 - Apr 14 bear leg
- RES 3: 1.3617 High Mar 29
- RES 2: 1.3582 50.0% retracement of the Mar 10 - Apr 14 bear leg
- RES 1: 1.3576 1.0% 10-dma envelope
- PRICE: 1.3560 @ 08:01 BST Apr 25
- SUP 1: 1.3473 Low Apr 21
- SUP 2: 1.3385/3302 Low Apr 19 / 14 and the bear trigger
- SUP 3: 1.3275 Low Feb 14
- SUP 4: 1.3262 Low Feb 2 and a key support
USDCAD maintains a firmer tone and is holding on to its recent gains. The pair has cleared the 1.3527 resistance - the 50-day EMA. The clear break of this hurdle strengthens the current bull cycle and signals scope for a climb towards 1.3576, the 1.0% 10-dma envelope. For bears, a failure to hold above the 50-day EMA would signal the end of the correction and attention would turn to the key support at 1.3302, the Apr 14 low.
EQUITIES: EU Cash opening calls
- Estox 50: -0.08%.
- Dax: +0.24%.
- CAC: -0.07%.
- FTSE -0.35%.
- SMI +0.21%.
BONDS: Tnotes/Bund spread tightest since 2014
- Although the Tnotes Bund spread is leaning wider, it is still trading just below the 100bps psychological handle, tested through that level yesterday.
- These are the tightest prints since February 2014.
- Further out, opens to 93.25bps the 2014 low.
Chart source: MNI/Bloomberg
