Camilla Sutton CFA, CMT, Chief FX Strategist at Scotiabank, notes that the short-term technicals for USD/CAD are mixed, as the pair trades stronger, but within its multi-week 1.2314-1.2799 range.
Key Quotes
“CAD is stronger, up 0.6% but trading at the midpoint of its multi week range of 1.2314 to 1.2799. Developments in oil, the broad shift in the USD and expectations for the BoC are the core drivers.”
“The short term correlation between CAD and oil prices has drifted lower as CAD and oil prices have traded in ranges over the last several weeks; however we still see oil prices are being a core component of the near-term pricing of BoC interest expectations and CAD.”
“We see the current range trading environment as a period of rest before CAD builds momentum for the next downside move.”
“USDCAD short‐term technicals: mixed—as the MACD warns of building downside risk while candlesticks warn of a range and other studies still warn of upside risk.”
“Accordingly for near-term traders there is likely better risk/reward elsewhere.”
“Support lies at the 200-day MA of 1.2412; while resistance lies at the recent high of 1.2698.”
Key Quotes
“CAD is stronger, up 0.6% but trading at the midpoint of its multi week range of 1.2314 to 1.2799. Developments in oil, the broad shift in the USD and expectations for the BoC are the core drivers.”
“The short term correlation between CAD and oil prices has drifted lower as CAD and oil prices have traded in ranges over the last several weeks; however we still see oil prices are being a core component of the near-term pricing of BoC interest expectations and CAD.”
“We see the current range trading environment as a period of rest before CAD builds momentum for the next downside move.”
“USDCAD short‐term technicals: mixed—as the MACD warns of building downside risk while candlesticks warn of a range and other studies still warn of upside risk.”
“Accordingly for near-term traders there is likely better risk/reward elsewhere.”
“Support lies at the 200-day MA of 1.2412; while resistance lies at the recent high of 1.2698.”
