Outlook for Canadian Dollar vs US Dollar, Pound Sterling and Euro by TD Securities

However the US dollar continues to prove a threat and could well advance higher in coming weeks. At the time of this article's last update (22/08) the following levels are witnessed:

• The pound to Canadian dollar exchange rate (GBP/CAD) is 0.02 pct higher when compared to last night's close at 1.8151.
• The euro to Canadian dollar exchange rate (EUR/CAD) is 0.02 pct higher at 1.4532.
• The US dollar to Canadian dollar rate (USD/CAD) is unchanged pct lower at 1.0940.

If you are holding out for better exchange rates then don't hesistate, ensure your FX provider has the relevant buy order in place for when your rate is achieved. Likewise, if there is a threshold you are not willing to cross to the downside ensure stop-loss orders are in place. Please learn more.

Pound to Canadian dollar outlook: Can the old trading band be maintained?

The GBP has traded a well-worn path against the CAD for much of much of 2014, the lower end being defined by the area around the mid 1.81's and the upper by the mid 1.84's.

However, we could see the pair slip into lower territory warns the latest technical outlook note issued by TD Securities:

"If GBPCAD’s slide through the latter part of last week and early this week runs true to the recent trend in this market, the sharp move lower will do just enough to persuade investors that a range break out might be about to unfold before the GBP  snaps back into the old, established trading band.

"We have had a mildly negative bias here since the GBP moved below the 40-day MA but will have to see how the GBP performs over the balance of the month before committing to a more negative view of prospects. A weak close to August will shift the balance of risks towards more GBP under-performance into Q4."

Euro to Canadian dollar outlook: Bias turns lower

The euro continues to struggle in global FX as sentiment towards the Eurozone remains lacklustre at best.

The euro has seen an increase in selling pressure against the US dollar and this is feeding into other majors such as the EUR/CAD.

TD Securities suggest that pressures are taking a bias towards the downside:

"We had expected a 1.45/1.47 range to play out near-term but, with the converging 28– and 40-day MA signals failing to provide support for the cross, the odds of a renewed slide (and new lows) are on the rise.

"Major support stands in at 1.4420; a sustained move below here will target a drop to the 1.40/1.42 range. Bear trend momentum is not particularly strong at this point but oscillators are well-positioned across a range of timeframes to pick up negatively."

US dollar to Canadian dollar outlook: 1.11/1.12 on the radar?

The USD is expected to maintain a positive bias going forward however is struggling to find the shot in the arm required to take out resistance against the CAD.

According to TD Securities the next few days are going to be key in determining whether the sell off persists or reverses:

Today’s rise through the short-term channel ceiling at 1.0889 (now support) suggests the balance of risks is "shifting towards a modest rally at least in funds from here. We target a push up to the mid 1.09s near-term, possibly higher if short-term momentum turns positive again soon.

"We rather think the odds favour the latter scenario as the daily chart reflects the trends noted on the short-term chart above in that the USD sell-off stalled clearly on Friday—right around the 200-day MA and close to trend support off the July low.

"The big, daily “doji” candle strongly suggests that the USD decline has run out of momentum. A sustained push above 1.0950/60 would support the idea of a broader turn up again in the USD. New cycle highs would put 1.11/1.12 on the radar."