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12 Dec 2014
USD/CAD may test 1.1690 level in the near‐term – Scotiabank
FXStreet (Barcelona) - Camilla Sutton CFA, CMT, Chief FX Strategist at Scotiabank, anticipates USD/CAD to test 1.1690 in the near term, supported by near and medium term technicals which warn of an ongoing upside pressure.
Key Quotes
“CAD has reached fresh 5.5 year lows, having lost a further 0.5% in the Asian and European sessions. The drop has been on the back of a further fall in oil prices, yesterday’s steady tone from Governor Poloz, and bearish CAD technicals; ignoring the better than expected data from China. The only domestic data released today is Teranet housing prices; leaving CAD trading off of oil and broader developments.”
“Near and medium term technical studies warn of ongoing upside pressure. The upward trend is strong and with the RSI at just 67, there is still significant upside room before reaching overbought levels. We are biased to be long USDCAD. For short‐term traders we would look for a near term test of 1.1690 and would place a stop at 1.1495.”
Key Quotes
“CAD has reached fresh 5.5 year lows, having lost a further 0.5% in the Asian and European sessions. The drop has been on the back of a further fall in oil prices, yesterday’s steady tone from Governor Poloz, and bearish CAD technicals; ignoring the better than expected data from China. The only domestic data released today is Teranet housing prices; leaving CAD trading off of oil and broader developments.”
“Near and medium term technical studies warn of ongoing upside pressure. The upward trend is strong and with the RSI at just 67, there is still significant upside room before reaching overbought levels. We are biased to be long USDCAD. For short‐term traders we would look for a near term test of 1.1690 and would place a stop at 1.1495.”