16 Feb 2015
AUD and CAD poised to correct higher – BBH
FXStreet (Barcelona) - The Brown Brothers Harriman Team shares the technical outlook for AUD/USD and USD/CAD, expecting both AUD and CAD to correct higher in the coming days.
Key Quotes
“From a macro point of view, both Australia and Canada are likely to cut rates again. Some think as soon as next month.”
“However, from a technical perspective, the both the Australian and Canadian dollars look poised to correct higher in the coming days.”
“The US dollar slipped through the 20-day moving average against the Canadian dollar for the first time since last September (~CAD1.2455), and managed to finish just below it on a weekly basis.”
“Initial resistance is seen around CAD1.2525.”
“On the downside; a shelf has been carved out in the CAD1.2350 area. A break of this could signal a move toward CAD1.22.”
“The Aussie may be more interesting. It appears to have traced out a double bottom in the $0.7625-40 area. It will not be confirmed unless the neckline near $0.7870 is broken, which is also where the 20-day moving average intersects.”
“Other technical indicators we use, including RSI, MACDs, and Stochastics appear to be generating stronger signals than the Canadian dollar.”
“A break of the neckline would suggest a measuring objective near $0.8000.”
Key Quotes
“From a macro point of view, both Australia and Canada are likely to cut rates again. Some think as soon as next month.”
“However, from a technical perspective, the both the Australian and Canadian dollars look poised to correct higher in the coming days.”
“The US dollar slipped through the 20-day moving average against the Canadian dollar for the first time since last September (~CAD1.2455), and managed to finish just below it on a weekly basis.”
“Initial resistance is seen around CAD1.2525.”
“On the downside; a shelf has been carved out in the CAD1.2350 area. A break of this could signal a move toward CAD1.22.”
“The Aussie may be more interesting. It appears to have traced out a double bottom in the $0.7625-40 area. It will not be confirmed unless the neckline near $0.7870 is broken, which is also where the 20-day moving average intersects.”
“Other technical indicators we use, including RSI, MACDs, and Stochastics appear to be generating stronger signals than the Canadian dollar.”
“A break of the neckline would suggest a measuring objective near $0.8000.”