Flash: CAD crosses showing signs of restraint? – TD Securities

FXstreet.com (New York) - According to the TD Securities Team, “The USD/CAD looks a little heavy on the longer-term charts, but the drop back from 1.06+ levels has steadied around the mid-point of the bull channel in place over the past few months and the 40-day MA.”

In addition, “We are a little conflicted at the moment. The broader trend is up and we remain broadly bullish on the outlook for USD/CAD. But it is not—yet—clear that the corrective potential (from 1.06) has fully-played out.” The team adds.

Meanwhile, the EUR/CAD has stalled around the 1.36 line – the cross reflected a lot of volatility but little overall net movement last week and the market is not showing too much inclination to move Monday.

“Trapped between the short-term moving averages (28– and 40-day) having rebounded from the 50% retracement support point of the May/June rally, the market really seems to have lost its sense of direction in the short-term. The bigger picture remains negative (bearish reversal patterns on the weekly chart through late June) so we are still inclined to look for lower levels while the 1.3812 June high remains intact.”