USD/CAD: Clean breakout above the resistance levels should prove difficult - Natixis

In view of the analysts at Natixis, rebounds cannot be ruled out for USD/CAD pair, but a clean breakout above the resistance levels around 1.3175-1.3188 (upper band of daily Bollinger) should prove difficult.

Key Quotes

“The weak daily volatility is a major obstacle to a pronounced rebound of the pair. Watch our rather for a pullback towards 1.3010 (lower band of daily Bollinger) before the support at 1.2975 (daily parabolic).”

“The utmost caution is in order, as a break below this last level would release significant downside, opening the way for a more pronounced decline towards 1.2908 (Fibonacci projection) and the support around 1.2780-1.28.”

“Take advantage of any rebounds towards 1.3175-1.3188 to sell the USD/CAD, with a first target at 1.2975 (setting the stop loss above 1.3230).”