USD/CAD: CONGESTION SUPPORT IN THE 1.3350/1.3400 ZONE MAY SLOW LOSSES – SCOTIABANK
The CAD was softer against a broadly stronger USD over the past week. Economists at Scotiabank analyze USD/CAD outlook.
Bearish near-term technical undertone
1) spot is trading close to fair value but factors are moving against the CAD in the model. 2) Risk appetite (i.e., equities) remains a key influence on short-term CAD movement and the rising rate environment and tense geo-political backdrop suggest some headwinds at least for stocks. 3) The USD rebound is nowhere near overextended, according to the TRIX oscillator. Overall, risks appear to be tilted towards a bit more CAD softness in the near-term at least.
Minor new lows for the USD today keep the near-term technical undertone for USD/CAD bearish below short-term bull channel support at 1.3440 and make last week’s failure at 1.3540 Fibonacci resistance look all the more meaningful now
Disclaimer: The content above represents only the views of the author or guest. It does not represent any views or positions of FOLLOWME and does not mean that FOLLOWME agrees with its statement or description, nor does it constitute any investment advice. For all actions taken by visitors based on information provided by the FOLLOWME community, the community does not assume any form of liability unless otherwise expressly promised in writing.
FOLLOWME Trading Community Website: https://www.followme.com
Hot
No comment on record. Start new comment.