17 Feb 2015
USD/CAD might test the bottom of its range at 1.2314 – Scotiabank
FXStreet (Barcelona) - Improving risk-sentiment and rising oil prices have supported CAD’s rally, notes Camilla Sutton of Scotiabank, further predicting USD/CAD to test the bottom end of its range at 1.2314 in the short-term.
Key Quotes
“CAD is strong, up 0.8% since yesterday’s close, benefiting from improving risk sentiment, rising oil prices and an environment of broad USD weakness.”
“Oil prices, and particularly the ability of both Brent and WTI to close above their 50‐day MA ($55.56 and $52.19, respectively), is supporting the rally in the petrol currencies like NOK and CAD; and continue to be a driving force behind CAD movement.”
“USDCAD short‐term technicals: mixed with technical studies lacking a unified signal.”
“Should the 9‐day moving average succeed in breaking below the 21‐day (1.2494 and 1.2477, respectively) we would see this as confirmation of a sell signal.”
“USDCAD support lies at the recent 1.2352 low followed by the bottom end of its recent range at 1.2314, we expect this level to be tested this week, with a break opening up a quick test down to 1.2285.”
“Resistance comes in at the 21‐day MA at 1.2477.”
Key Quotes
“CAD is strong, up 0.8% since yesterday’s close, benefiting from improving risk sentiment, rising oil prices and an environment of broad USD weakness.”
“Oil prices, and particularly the ability of both Brent and WTI to close above their 50‐day MA ($55.56 and $52.19, respectively), is supporting the rally in the petrol currencies like NOK and CAD; and continue to be a driving force behind CAD movement.”
“USDCAD short‐term technicals: mixed with technical studies lacking a unified signal.”
“Should the 9‐day moving average succeed in breaking below the 21‐day (1.2494 and 1.2477, respectively) we would see this as confirmation of a sell signal.”
“USDCAD support lies at the recent 1.2352 low followed by the bottom end of its recent range at 1.2314, we expect this level to be tested this week, with a break opening up a quick test down to 1.2285.”
“Resistance comes in at the 21‐day MA at 1.2477.”