9 Mar 2015
USD/CAD might move lower to test support at 1.2540/50 – TDS
FXStreet (Barcelona) - Shaun Osborne, Chief FX Strategist at TD Securities, views that USD/CAD looks mildly overvalued based on their FV regression model, and further predicts the pair might move lower to test the support at 1.2540/50.
Key Quotes
“USDCAD still look mildly overvalued relative to our (spreads and terms of trade-based fair value regression model). The model suggests a slightly firmer equilibrium rate from Friday (1.2507) but the estimate remains below spot and suggests, all else remaining equal, that USDCAD may struggle to extend significantly from here at this point.”
“On the charts, USDCAD has rolled a little lower from the overnight highs in the low 1.26s as Friday’s post-NFP peaks hold and funds may edge a little lower in our session to test support at 1.2540/50.”
“We see resistance at 1.2600/25.“
Key Quotes
“USDCAD still look mildly overvalued relative to our (spreads and terms of trade-based fair value regression model). The model suggests a slightly firmer equilibrium rate from Friday (1.2507) but the estimate remains below spot and suggests, all else remaining equal, that USDCAD may struggle to extend significantly from here at this point.”
“On the charts, USDCAD has rolled a little lower from the overnight highs in the low 1.26s as Friday’s post-NFP peaks hold and funds may edge a little lower in our session to test support at 1.2540/50.”
“We see resistance at 1.2600/25.“