9 Mar 2015
USD/CAD looking for 1.2800 – BMO
FXStreet (Barcelona) - The Research Team at BMO Capital Markets, view that the underlying bullish trend of USD/CAD is set to resume, and hence suggest getting long on the pair, targeting 1.2800 and then 1.30/31 levels.
Key Quotes
“USDCAD price action has been unfolding within a pennant formation since the 1.2800 cycle high seen in late January. Such formations usually resolve in the direction of the underlying trend (which is higher in this case) but waiting for the signal is important.”
“Friday’s close above the top of the pennant on Friday tentatively signals such a bullish resolution and argues for a return to 1.2800 and beyond in the days and weeks ahead. The measured objective would target 1.30/1.31.”
“Getting long on dip to 1.2550-1.2600 is the favoured approach from here, looking for 1.2800 and then 1.30/31.”
Key Quotes
“USDCAD price action has been unfolding within a pennant formation since the 1.2800 cycle high seen in late January. Such formations usually resolve in the direction of the underlying trend (which is higher in this case) but waiting for the signal is important.”
“Friday’s close above the top of the pennant on Friday tentatively signals such a bullish resolution and argues for a return to 1.2800 and beyond in the days and weeks ahead. The measured objective would target 1.30/1.31.”
“Getting long on dip to 1.2550-1.2600 is the favoured approach from here, looking for 1.2800 and then 1.30/31.”