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31 Mar 2015
USD/CAD showing mixed technicals – Scotiabank
FXStreet (Edinburgh) - In the view of Camilla Sutton, Chie FX Strategist at Scotiabank, the short term prospects for the pair remain mixed.
Key Quotes
“CAD is weak, having lost 0.5% since yesterday’s close. In USDCAD terms, it has rallied almost 3% since its March 26th low of 1.2410 and is flirting with a test up to its March 18th high of 1.2835”.
“Volatility is also rising, with 3‐month now back above 10”.
“The expectations for a second BoC interest rate cut (currently pricing in a 45% risk of a May interest rate cut), is closely tied to oil prices, but any surprise to how the economy performed in January will also fed directly into it”.
“Range trading continues to be the core theme for USDCAD and technicals are supporting this”.
“Resistance comes in at the March 18 high of 1.2835, a break above this level would open up a test to 1.2900; however technicals are not warning of an imminent break. Support lies at today’s open of 1.2675”.
Key Quotes
“CAD is weak, having lost 0.5% since yesterday’s close. In USDCAD terms, it has rallied almost 3% since its March 26th low of 1.2410 and is flirting with a test up to its March 18th high of 1.2835”.
“Volatility is also rising, with 3‐month now back above 10”.
“The expectations for a second BoC interest rate cut (currently pricing in a 45% risk of a May interest rate cut), is closely tied to oil prices, but any surprise to how the economy performed in January will also fed directly into it”.
“Range trading continues to be the core theme for USDCAD and technicals are supporting this”.
“Resistance comes in at the March 18 high of 1.2835, a break above this level would open up a test to 1.2900; however technicals are not warning of an imminent break. Support lies at today’s open of 1.2675”.