FXStreet (Córdoba) – According to analysts from TD Securities the area around 1.28/1.29 in USD/CAD could be an opportunity for a long position, but a break lower would open potential toward 1.2550.
Key Quotes:
“After correcting aggressively from multi-year highs, many have begun to question whether the USDCAD bull market is over. Rather, we view recent price action as a healthy and necessary pre-condition for another but more moderate up -leg over the medium-term. Over the course of the rest of the year however, we think that USDCAD is in for a phase of benign trading until a clear policy catalyst arrives. Ultimately, a weak but stable CAD is necessary to facilitate the structural realignment in the economy.”
“The 1.28/29 region is a key area for USDCAD, in our view, as it represents levels observed post-BoC cut in July. We view this range as an appealing opportunity to add small longs from a strategic perspective.”
“Our year-end target remains at 1.33 so we like adding on dips towards the 1.28/1.29 zone from a strategic perspective (our first half target is 1.37). A break below 1.2800 would open downside potential towards 1.2550/1.2650 area but it would not surprise us to see momentum players step in and push it even lower.”
(Market News Provided by FXstreet)