FXStreet (Edinburgh) – Strategists at TD Securities recommend buying the pullbacks in the pair.
Key Quotes
“It is interesting to note that last week’s CFTC data showed an accumulation in net CAD longs. Though small, we find it odd given that spot has slide over the reporting period”.
“Nonetheless, it suggests to us that this may CAD weakness has more to do with USD firmness than a material shift in positioning in CAD”.
“But, net long positions in CAD suggest a growing risk of a snapback in USDCAD, but we do not think enough to test our daily fair value estimate of 1.2335”.
“We continue to advocate a buy on dip strategy though our expectation for stronger
Canadian payrolls on Friday could present a compelling opportunity to do just that”.
“The trend over the coming weeks and months remains up”.
(Market News Provided by FXstreet)