22 Jul 2015
USD/CAD could see a dip to 1.2560 – TDS
FXStreet (Edinburgh) - In the view of strategists at TD Securities, a pullback is expected in the pair before resuming its way to the 1.33 area by year-end.
Key Quotes
“After stalling at around 1.30, there was a small scale capitulation in USDCAD yesterday”.
“While we remain fundamentally bullish on USDCAD we now see short-term pullback as likely and necessary”.
“Yesterday’s price action in USDCAD was significant in our view. Spot USDCAD dipped as low as 1.2917 before reluctantly grinding its way higher to about 1.2980 currently”.
“But despite this rebound after yesterday mini-selloff, we think a test of support around the 1.2780/1.2805 area is likely and an even deeper correction to the 1.2560 region is possible (which coincides with the 50% retracement level for the 18 June—20 July up-move)”.
“Once a near-term consolidation is behind us, we then look for a resumption of our year-end target of 1.33”.
Key Quotes
“After stalling at around 1.30, there was a small scale capitulation in USDCAD yesterday”.
“While we remain fundamentally bullish on USDCAD we now see short-term pullback as likely and necessary”.
“Yesterday’s price action in USDCAD was significant in our view. Spot USDCAD dipped as low as 1.2917 before reluctantly grinding its way higher to about 1.2980 currently”.
“But despite this rebound after yesterday mini-selloff, we think a test of support around the 1.2780/1.2805 area is likely and an even deeper correction to the 1.2560 region is possible (which coincides with the 50% retracement level for the 18 June—20 July up-move)”.
“Once a near-term consolidation is behind us, we then look for a resumption of our year-end target of 1.33”.