Forex Flash: Technical picture for USD/CAD suggests consolidation - TD Securities

FXstreet.com (Barcelona) - The USD/CAD finished the day lower, down 20 pips at 1.0026. After suffering steep losses over the last two weeks (was trading just below 1.0300 in mid April), some analysts believe the pair is due for consolidation.

According to Shaun Osborn, Chief FX Strategist at TD Securities, “USD/CAD retains a soft bias but the lack of acceleration away from the 1.0050 area—so far, at least—suggests little interest in leaning too hard on the downside just now. There is also some indication form the short-term candle patterns that some bargain-hunting buyers have stepped into the market in the 1.0040 area to help prop up the downside.”

He went on to add, “USD/CAD is starting to look a little oversold on the short-term studies though there is no obvious sign of the market turning higher on either the 6-hour chart, above, or the daily chart, below. Instead, the technical picture suggests consolidation at the moment. Short-term trend momentum is bearish, but weakening. Daily trend momentum is bearish. Weekly trend momentum is neutral at the moment. “