5 Mar 2015
USD/CAD near-term risks to the downside – TDS
FXStreet (Barcelona) - With BoC staying on hold, Shaun Osborne, Chief FX Strategist at TD Securities, views that the near-term risks for USD/CAD lies to the downside towards the support in upper 1.23 area.
Key Quotes
“We think the odds of a correction in USDCAD have been enhanced by the Bank staying on hold; we think near-term risks are centered on a drop back under support in the upper 1.23s which should then see spot fall to 1.21/1.22 in the next few weeks.”
“Recall that seasonal factors continue to favour a correction in USDCAD extending over the next few weeks, with April usually the worst months of the year for the USD vs the CAD.”
“Key support on the daily chart is 1.2390/95 (trend line at 95 and 40-day MA at 1.2388).”
Key Quotes
“We think the odds of a correction in USDCAD have been enhanced by the Bank staying on hold; we think near-term risks are centered on a drop back under support in the upper 1.23s which should then see spot fall to 1.21/1.22 in the next few weeks.”
“Recall that seasonal factors continue to favour a correction in USDCAD extending over the next few weeks, with April usually the worst months of the year for the USD vs the CAD.”
“Key support on the daily chart is 1.2390/95 (trend line at 95 and 40-day MA at 1.2388).”