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19 Feb 2014
Flash: USD/CAD upside risks intact - JPMorgan
FXStreet (Bali) - According to Niall O'Connor, FX Strategist at JP Morgan, while the USD/CAD short term retracement continues to develop, the overall
upside risks remain intact.
Key Quotes
"While our medium term bearish view for CAD is unchanged, the recent corrective phase highlights the extreme momentum setup and proximity to the next critical levels especially for USD/CAD."
"The 1.1200/34 zone remains the key test as it includes the 50% retracement of the decline from the 2009 cycle peak. Still, the retracement had thus far developed in a corrective manner while effectively holding key support levels. Moreover, the lack of a topping pattern keeps the overall upside bias intact."
"Support enters in the 1.0950/00 zone, near the 50% retracement of the rally from the January low. Violations here would confirm a deeper pullback into the 1.0830/1.0780 zone which includes the uptrendline from the October low."
upside risks remain intact.
Key Quotes
"While our medium term bearish view for CAD is unchanged, the recent corrective phase highlights the extreme momentum setup and proximity to the next critical levels especially for USD/CAD."
"The 1.1200/34 zone remains the key test as it includes the 50% retracement of the decline from the 2009 cycle peak. Still, the retracement had thus far developed in a corrective manner while effectively holding key support levels. Moreover, the lack of a topping pattern keeps the overall upside bias intact."
"Support enters in the 1.0950/00 zone, near the 50% retracement of the rally from the January low. Violations here would confirm a deeper pullback into the 1.0830/1.0780 zone which includes the uptrendline from the October low."