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22 May 2015
USD/CAD remains bullish near term – Scotiabank
FXStreet (Edinburgh) - In the opinion of Eric Theoret, Currency Strategist at Scotiabank, the perspective for the pair in the short term remains bullish.
Key Quotes
“USDCAD has been remarkably quiet since Tuesday, consolidating around 1.2200 and pressuring the 10 day average intraday high-low range to a four month low below 100pts”.
“As such, the risk for USDCAD is one of an outsized move, with the bulk of the large, 2015 intraday swings having occurred on the back of Fed and BoC events”.
“USDCAD short-term technicals: bullish—momentum indicators are only modestly bullish, and the ADX trend signal continues to soften, reflecting the recent consolidation”.
“We note near term support around 1.2180 with resistance just above 1.2250. A break of either of these levels would shift the focus to 1.2050 on the downside, with upside risk centered on the 50 day MA at 1.2329”.
Key Quotes
“USDCAD has been remarkably quiet since Tuesday, consolidating around 1.2200 and pressuring the 10 day average intraday high-low range to a four month low below 100pts”.
“As such, the risk for USDCAD is one of an outsized move, with the bulk of the large, 2015 intraday swings having occurred on the back of Fed and BoC events”.
“USDCAD short-term technicals: bullish—momentum indicators are only modestly bullish, and the ADX trend signal continues to soften, reflecting the recent consolidation”.
“We note near term support around 1.2180 with resistance just above 1.2250. A break of either of these levels would shift the focus to 1.2050 on the downside, with upside risk centered on the 50 day MA at 1.2329”.