USD/CAD: At the risk of extended losses back towards 1.32/1.33 in the next couple of weeks – Scotiabank
|The CAD is riding the soft USD wave back to its best levels since the end of September and might have a bit more to go yet, economists at Scotiabank report.
Scope for rebounds is looking increasingly constrained
Spot losses below 1.3490/1.3495 tilt technical risks more strongly to the downside in the near-to-medium term.
New short-term cycle lows for the USD plus a stronger alignment of bearish trend oscillators and longer-term bear reversal signals for the USD which developed through November all imply ongoing downward pressure on the USD towards 1.3400 (61.8% retracement of the H2 rally in the USD) at least in the near-term.
Broader USD weakness is lifting the risk of extended losses back towards 1.32/1.33 in the next couple of weeks.
Scope for USD rebounds is looking increasingly constrained; recoveries are liable to stall in the 1.35 zone now.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.