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Flash: USD/CAD rebound imminent – TD Securities

FXstreet.com (Lisbon) - The USD/CAD is retesting yesterday’s lows as our session gets underway – the soft undertone evident over the past week persists, notes the TD Securities Team.

Key quotes

“Oil prices have improved a little in the overnight session after yesterday’s sell off but remain close to 5% off of the recent peaks. Commodity prices fell broadly yesterday and that may slow the CAD rise to some extent.”

“The short-term charts suggest that the broader move lower in USD/CAD may be starting to flatten out a little—reflecting an easing in selling pressure. The USD struggled to move back above 1.0355/65 yesterday though at that area remains key short-term resistance (minor double bottom trigger if 1.0330/35 holds.”

“We can’t rule out a little more USD weakness near-term but we do rather think the sell-off is looking a bit over-extended at least. A rebound to the 1.04 area would not surprise in the next 1-2 days.”

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