USD/CAD: Risks easing a little more from a technical point of view – Scotiabank
|The Canadian Dollar (CAD) remains pinned back to near its recent lows against the US Dollar (USD) in the upper 1.36s, where the USD has camped out for most of the week so far, Scotiabank's Chief FX Strategists Shaun Osborne and Eric Theoret note.
CAD slips on the day
"Markets are working on limited new information (little relevant data ahead of Friday’s Canadian jobs report and radio silence on trade) so its hardly surprising that the CAD is showing little ability to move at the moment."
"The broader USD rebound is contributing much of the lift under funds at the moment and, for the first time in a few days, factors influencing the CAD in our fair value model have stopped deteriorating, leaving today’s estimate equilibrium marginally lower than yesterday at 1.3586. That may help constrain the topside momentum in the USD absent any other developments."
"Spot is holding within its recent trading range but technical risks may have shifted a little higher, due to the flatter top and rising base (effectively a wedge pattern) that has developed on the intraday chart. Spot is also testing trend resistance (1.3665/75) on the daily chart which may point to spot gains extending to 1.3750/60 (June 27th high). Support is 1.3640."
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.