USD/CAD closed below the 200 day moving average last week and is now aggressively through the 2013 high at 1.0738, notes CitiFX Technicals.
“The sustained move lower today after the break last week suggests this move lower may have more room to run and initial supports are at the 55 week moving average (1.0685) and just below there around 1.06 (converging trend line and July 2013 high),” Citi projects.
“A break below that range of supports, if seen, would then open the way towards the 1.0180-1.0190 area (converging 200 week moving average and September low),” Citi adds.
The one note of caution, according to Citi, is that momentum on both the daily and weekly charts is very stretched and as such some of the CAD crosses may then offer more value.
In CAD/JPY, Citi notes that is has crossed through the 200 day moving average and the April high at 94.90.
“A close above the April high then opens the way towards the 97.50 area, which are the highs from July and September,” Citi argues.
In EUR/CAD, Citi thinks that it alos should continue to grind lower with initial supports around 1.4475-1.4483 (upward sloping trend line and 55 week moving average) and right below there additional supports around 1.4352-1.4380 (late 2010 and 2011 highs).
“A break below there, if seen, suggests much lower levels towards the 1.37 area are likely (200 week moving average and February 2013 high,” Citi adds.