23 Mar 2015
USD/CAD still capped at 1.28 – TDS
FXStreet (Barcelona) - Shaun Osborne, Chief FX Strategist at TD Securities, notes that USD/CAD technicals suggest that the pair might remain weak in the near-term.
Key Quotes
“Near-term, we expect only modest scope for USDCAD to slip lower. Three are no major data points for Canada this week but the weak data seen through the early part of the year so far confirm expectations that the Q1 GDP data is liable to be weak.”
“Governor Poloz may shed a little more light on BoC thinking Thursday (9.30ET—note that Deputy Governor Lane is also speaking the data before in BC at 15.30ET). It may take a more obviously dovish undertone from the BoC this week to push the CAD lower and if that does not emerge, we may see funds ease back under 1.25.”
“The charts are unquestionably soft for USDCAD in the near-term, at least. Big, bearish reversals were struck on the daily and weekly charts last week and there is a potential double top forming on the daily chart.”
“Near-term, we think sustained weakness below 1.2525/30 in the next day or so (or a daily close below 1.2558—the 40-day MA) may signal more weakness ahead.”
“Major support is 1.2425/30, then 1.2365 (double top trigger).”
Key Quotes
“Near-term, we expect only modest scope for USDCAD to slip lower. Three are no major data points for Canada this week but the weak data seen through the early part of the year so far confirm expectations that the Q1 GDP data is liable to be weak.”
“Governor Poloz may shed a little more light on BoC thinking Thursday (9.30ET—note that Deputy Governor Lane is also speaking the data before in BC at 15.30ET). It may take a more obviously dovish undertone from the BoC this week to push the CAD lower and if that does not emerge, we may see funds ease back under 1.25.”
“The charts are unquestionably soft for USDCAD in the near-term, at least. Big, bearish reversals were struck on the daily and weekly charts last week and there is a potential double top forming on the daily chart.”
“Near-term, we think sustained weakness below 1.2525/30 in the next day or so (or a daily close below 1.2558—the 40-day MA) may signal more weakness ahead.”
“Major support is 1.2425/30, then 1.2365 (double top trigger).”