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5 May 2016
USDCAD: Risks are clearly tilted higher for a test of 1.2988 - Scotiabank
Research Team at Scotiabank, suggests that the USDCAD’s rebound developed strongly and they are shifting their bias materially as a consequence.
Key Quotes
“A bullish outside range day reversal (supported by confirmed reversals on shortterm/ intraday charts) signals an important low point in USDCAD is now in from a technical perspective. There is a strong chance that the weekly chart develops a similarly bullish signal this week.
Multiple reversals across multiple timeframes plus the break above the 2016 bear trend clearly signal a change in technical tone. We had thought a deeper dip under 1.25 was achievable but we now think risks are clearly tilted higher for a test of 1.2988 (23.6% Fib retracement of the 2016 trend decline). A high close to the week implies 1.33/1.35 risk in 1-3 months. Buy USD dips.”
Key Quotes
“A bullish outside range day reversal (supported by confirmed reversals on shortterm/ intraday charts) signals an important low point in USDCAD is now in from a technical perspective. There is a strong chance that the weekly chart develops a similarly bullish signal this week.
Multiple reversals across multiple timeframes plus the break above the 2016 bear trend clearly signal a change in technical tone. We had thought a deeper dip under 1.25 was achievable but we now think risks are clearly tilted higher for a test of 1.2988 (23.6% Fib retracement of the 2016 trend decline). A high close to the week implies 1.33/1.35 risk in 1-3 months. Buy USD dips.”