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14 Apr 2015
USD/CAD could re-visit 1.2800 in the medium term – Westpac
FXStreet (Edinburgh) - According to strategists at Westpac, the pair could re-test the area of 1.2800 in the upcoming periods.
Key Quotes
“USD/CAD remains locked inside a sideways range bounded by 1.24 and 1.28”.
“Momentum is currently neutral but could rise following the BOC meeting”.
“Further ahead, we expect the 1.28 range ceiling to be tested as the US dollar reasserts its uptrend”.
“The model’s attitude toward CAD remains as bearish as ever (-31.8%)”.
“CAD’s total yield signal saw a small improvement after the recent firmer jobs data but it is not nearly enough to overcome one of the weakest G10 growth signals and a strong short term TWI overvaluation signal”.
“A new March/April low last week could not be sustained, allowing price to creep back into its multi-month range. Medium term topping pattern in March is a bearish risk. Below 1.2350 targets a multi-week decline”.
Key Quotes
“USD/CAD remains locked inside a sideways range bounded by 1.24 and 1.28”.
“Momentum is currently neutral but could rise following the BOC meeting”.
“Further ahead, we expect the 1.28 range ceiling to be tested as the US dollar reasserts its uptrend”.
“The model’s attitude toward CAD remains as bearish as ever (-31.8%)”.
“CAD’s total yield signal saw a small improvement after the recent firmer jobs data but it is not nearly enough to overcome one of the weakest G10 growth signals and a strong short term TWI overvaluation signal”.
“A new March/April low last week could not be sustained, allowing price to creep back into its multi-month range. Medium term topping pattern in March is a bearish risk. Below 1.2350 targets a multi-week decline”.