USD/CAD: Risks are Clearly Tilted Higher for a Test of 1.2988 - Scotiabank
USD/CAD: Risks are Clearly Tilted Higher for a Test of 1.2988 - Scotiabank
Research Team at Scotiabank, suggests that the USD/CAD’s rebound
developed strongly and they are shifting their bias materially as a
consequence.
Key Quotes
“A bullish
outside range day reversal (supported by confirmed reversals on
shortterm/ intraday charts) signals an important low point in USD/CAD is
now in from a technical perspective. There is a strong chance that the
weekly chart develops a similarly bullish signal this week.
Multiple
reversals across multiple timeframes plus the break above the 2016 bear
trend clearly signal a change in technical tone. We had thought a
deeper dip under 1.25 was achievable but we now think risks are clearly
tilted higher for a test of 1.2988 (23.6% Fib retracement of the 2016
trend decline). A high close to the week implies 1.33/1.35 risk in 1-3
months. Buy USD dips.”
