26 May 2015
USD/CAD might move towards 1.2480 on a dovish BoC – BBH
FXStreet (Barcelona) - With USD/CAD testing the resistance at 1.2380 at present, a higher move towards 1.2480 might be possible on a dovish BoC tomorrow, explains the Brown Brothers Harriman Team.
Key Quotes
“The Bank of Canada meets tomorrow. No change in policy is expected. The shift to a net long speculative Canadian dollar positions as of May 19 (for the first time since last September) seems premature.”
“The US dollar has carved out a bottom against it, and last week’s close above CAD1.2250 was important. It is testing the CAD1.2380 area now, which corresponds to a retracement objective of the two-month slide. The next objective is near CAD1.2480, but might need a dovish BOC to spur a move there.”
Key Quotes
“The Bank of Canada meets tomorrow. No change in policy is expected. The shift to a net long speculative Canadian dollar positions as of May 19 (for the first time since last September) seems premature.”
“The US dollar has carved out a bottom against it, and last week’s close above CAD1.2250 was important. It is testing the CAD1.2380 area now, which corresponds to a retracement objective of the two-month slide. The next objective is near CAD1.2480, but might need a dovish BOC to spur a move there.”