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25 Feb 2015
USD/CAD technicals supporting a move lower towards 1.2314 – Scotiabank
FXStreet (Barcelona) - Camilla Sutton CFA, CMT, Chief FX Strategist at Scotiabank, explains that USD/CAD technicals confirm the fundamentally bearish outlook for the pair, further expecting the pair to move lower in its range to test 1.2314 levels.
Key Quotes
“CAD is strong having rallied almost 2% from yesterday’s lows on the back of BoC comments, a stronger than expected HSBC Chinese manufacturing PMI and stabilization in oil prices.”
“In USDCAD terms it continues to trade within its month long range of 1.2314 to 1.2799, having failed to break to the highs and now making an attempt at the lows. The break of the range will be important.”
“There are no domestic data releases or BoC speakers today, leaving markets still digesting yesterday’s CAD positive developments but also looking towards .S. crude inventories (10:30am EST) for direction. Consensus is another build of 3,667k, which is CAD negative as it will push inventories even further outside of the 5‐year range.”
“USDCAD short‐term technicals: mixed ‐ but favouring the bearish side.”
“The fundamental picture has now turned in favour of a temporary test lower in USDCAD, warning of a test down to the low end of the USDCAD range at 1.2314.”
“Near‐term support lies at 1.2400, with resistance at today’s open of 1.2486.”
Key Quotes
“CAD is strong having rallied almost 2% from yesterday’s lows on the back of BoC comments, a stronger than expected HSBC Chinese manufacturing PMI and stabilization in oil prices.”
“In USDCAD terms it continues to trade within its month long range of 1.2314 to 1.2799, having failed to break to the highs and now making an attempt at the lows. The break of the range will be important.”
“There are no domestic data releases or BoC speakers today, leaving markets still digesting yesterday’s CAD positive developments but also looking towards .S. crude inventories (10:30am EST) for direction. Consensus is another build of 3,667k, which is CAD negative as it will push inventories even further outside of the 5‐year range.”
“USDCAD short‐term technicals: mixed ‐ but favouring the bearish side.”
“The fundamental picture has now turned in favour of a temporary test lower in USDCAD, warning of a test down to the low end of the USDCAD range at 1.2314.”
“Near‐term support lies at 1.2400, with resistance at today’s open of 1.2486.”