Bearish momentum is building up in USD/CAD – Westpac

FXStreet (Edinburgh) - Strategists at Westpac suggested USD/CAD could accelerate its decline below the 1.2350 level.

Key Quotes

“USD/CAD looks like it may well continue for another week inside what is now a near two month range bounded by 1.24 and 1.28”.

“Heightened near term risk of a broader USD pullback, as the US data continues to disappoint and the FOMC minutes expand on the last meeting’s dovish tilt could see USD/CAD easily testing the bottom of recent ranges. Suspect the lows will hold”.

“Bearish medium term topping pattern in mid/late March is gaining traction as medium term momentum indicators rack up bearish triggers. Recent lows remain under pressure. Below 1.2350 targets a material multi-week decline”.

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