12 May 2015
Buy the dips in USD/CAD – Westpac
FXStreet (Edinburgh) - Strategists at Westpac believe pullbacks in spot should be considered as a buying opportunity.
Key Quotes
“USD/CAD has now bounced off 1.1940 for a second time in as many weeks, an important break out level from January coinciding with the Bank of Canada’s then shock rate cut”.
“In both instances the rejection of 1.1940 has been such that the pair has also closed above 1.2000 too, important psychological support”.
“The run up in crude oil looks overdone too (40%+ in seven weeks)”.
“Bottom line USD/CAD increasingly offering value here as an opportunistic buy”.
“Interim downtrend has paused while key support at 1.1980/00 (major Fibonacci retracement / 1 year uptrend support) has held dips in each of the last 2 weeks. Weekly close below 1.1980 is bearish”.
Key Quotes
“USD/CAD has now bounced off 1.1940 for a second time in as many weeks, an important break out level from January coinciding with the Bank of Canada’s then shock rate cut”.
“In both instances the rejection of 1.1940 has been such that the pair has also closed above 1.2000 too, important psychological support”.
“The run up in crude oil looks overdone too (40%+ in seven weeks)”.
“Bottom line USD/CAD increasingly offering value here as an opportunistic buy”.
“Interim downtrend has paused while key support at 1.1980/00 (major Fibonacci retracement / 1 year uptrend support) has held dips in each of the last 2 weeks. Weekly close below 1.1980 is bearish”.