25 Aug 2015
USD/CAD bullish near term – Scotiabank
FXStreet (Edinburgh) - In the opinion of Eric Theoret, Currency Strategist at Scotiabank, the near term outlook for the pair remains on the upside.
Key Quotes
“We note that OIS continue to price a roughly 70% chance of a 25bpt rate cut over the next 12 months, with near term risk of a moderation in response to China’s actions”.
“USDCAD has formed an outside day off a fresh multi-year high, engulfing Monday’s entire range”.
“A bearish outside reversal pattern would be confirmed with a close at or below Monday’s open 1.3183. Near term support lies at the short term MA’s, with the 9 day at 1.3128 and the 21 day at 1.3094”.
Key Quotes
“We note that OIS continue to price a roughly 70% chance of a 25bpt rate cut over the next 12 months, with near term risk of a moderation in response to China’s actions”.
“USDCAD has formed an outside day off a fresh multi-year high, engulfing Monday’s entire range”.
“A bearish outside reversal pattern would be confirmed with a close at or below Monday’s open 1.3183. Near term support lies at the short term MA’s, with the 9 day at 1.3128 and the 21 day at 1.3094”.