FXStreet (Barcelona) – FX Strategists at TD Securities, note that USD/CAD looks cheap when compared to their fair value estimate, and hence an upside climb might be on the cards.
Key Quotes
“USDCAD still looks “cheap” relative to our fair value assessment (1.2365 today) so an extension of the USD rebound is not out of the question—even if intraday trends do hinge to a large extent perhaps on the US retail sales outcome.”
“We think USDCAD needs to break back (and hold) above 1.2300/10 to rebound towards the high 1.23s/low 1.24s. Intraday, we look for support at 1.2230/40.”
“NZDCAD continues to trade weakly and is testing major support at 0.8600; look for limited upside in the cross from here and for losses to accelerate again below the figure.”
(Market News Provided by FXstreet)