30 Jan 2015
USD/CAD short-term bullish – Scotiabank
FXStreet (Barcelona) - Camilla Sutton CFA, CMT, Chief FX Strategist at Scotiabank, shares that USD/CAD still has short-term upside room, with the pair expected to face resistance at 1.2700 levels.
Key Quotes
“CAD is weak, having lost 0.2% since yesterday’s close. The depreciation in CAD has proven unrelenting.”
“On a year‐to‐date basis, CAD is down 8% and is the worst performing primary currency.”
“Today, the dual GDP, released in both Canada and the U.S., is likely to highlight the diverging growth profiles between the two countries, reinforcing one of the core themes of CAD weakness.”
“Oil prices are hovering close to $45 and remain the core driver of CAD. The downward trend in CAD is overdue for a temporary period of retracement; however to date signals are still flagging upside risks. Accordingly we would trade with the trend.”
“USDCAD short‐term technicals: bullish—the RSI at 84 is well into overbought territory and raises a cautionary flag. Beyond that there are no warnings on the charts, suggesting that USDCAD still has upside room. Support lies at 1.2550, while resistance comes in at 1.2700.”
Key Quotes
“CAD is weak, having lost 0.2% since yesterday’s close. The depreciation in CAD has proven unrelenting.”
“On a year‐to‐date basis, CAD is down 8% and is the worst performing primary currency.”
“Today, the dual GDP, released in both Canada and the U.S., is likely to highlight the diverging growth profiles between the two countries, reinforcing one of the core themes of CAD weakness.”
“Oil prices are hovering close to $45 and remain the core driver of CAD. The downward trend in CAD is overdue for a temporary period of retracement; however to date signals are still flagging upside risks. Accordingly we would trade with the trend.”
“USDCAD short‐term technicals: bullish—the RSI at 84 is well into overbought territory and raises a cautionary flag. Beyond that there are no warnings on the charts, suggesting that USDCAD still has upside room. Support lies at 1.2550, while resistance comes in at 1.2700.”