17 Dec 2014
CAD is soft and vulnerable to further downside on oil and Fed – Scotiabank
FXStreet (Barcelona) - Camilla Sutton CFA, CMT, Chief FX Strategist at Scotiabank, observes that CAD is weak, reacting to soft oil prices, rising market volatility and a generally stronger USD into the NA open.
Key Quotes
“Today, the focus will be the U.S. Fed and CPI; however the release of wholesale sales, expected to rise 0.2%m/m, are domestically important. The current environment is negative for CAD and we expect further near-term weakening.”
“USDCAD short‐term technicals: bullish—technical studies all warn of increasing upside risk. With no warnings on the charts. The MACD has rallied to fresh highs in tandem with the currency, the RSI is at 68, leaving some room before reaching overbought and the upward trend is strong.”
“The next level of resistance is 1.1700 and we’d expect it to be tested in the near-term. The outlook would only shift to a more bearish tone if USDCAD breaks back below 1.1500.”
Key Quotes
“Today, the focus will be the U.S. Fed and CPI; however the release of wholesale sales, expected to rise 0.2%m/m, are domestically important. The current environment is negative for CAD and we expect further near-term weakening.”
“USDCAD short‐term technicals: bullish—technical studies all warn of increasing upside risk. With no warnings on the charts. The MACD has rallied to fresh highs in tandem with the currency, the RSI is at 68, leaving some room before reaching overbought and the upward trend is strong.”
“The next level of resistance is 1.1700 and we’d expect it to be tested in the near-term. The outlook would only shift to a more bearish tone if USDCAD breaks back below 1.1500.”