 | |  | | [07:32 USD/CAD: Belated Response to Mixed MPR and SARS Fears] USD/CAD has boomed
higher in late Asia/early European trade Thursday. Opening up just above 1.4510,
a mixture of U.S., European and Japanese names have bought the pair in good
size. CAD/JPY profit taking has been seen while a large stop in USD/CAD was
triggered above 1.4550. Corporate and fund offers around 1.4600 were pierced
easily and fresh stops have been triggered above 1.4610. With this market still
short. The SARS outbreak, the mixed MPR and the fact that the RBNZ cut overnight
may all weigh on the Loonie through the session. More stops tipped above 1.4625
and 1.4650 appear to be the next target.
Domestic Leading Indicators data for March come later, while Initial Claims and
Durable Goods numbers are set for release out of the U.S.
Technically, daily studies are beginning to turn up after the strong intraday
rally. Price is back above the 10-day moving average, last at 1.4525, and we
look set for a test of fibo resistance at 1.4625 (38.2% of 1.4940/1.4430 move).
For now resistance at 1.4675 (top of the 1% moving average band) and 1.4685 (50%
of the move) should help cap but strong reversal signals appear to be underway. |  |  |  |  |
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