USDCAD extends rally, on track for 1.39/1.40 target - Scotiabank

Sandeep Kanihama FXStreet Contributor

Analysts at Scotiabank points out that USDCAD is making solid progress towards the bull targets and they noted that the bullish break from the Mar/Apr consolidation (bull flag) pointed to a repeat of the Feb/Mar rally (essentially targeting 1.39).

Key Quotes

“Secondly, we viewed the push above resistance just under 1.35 as a bull break from an inverse H&S continuation pattern (targets 1.40). A strong weekly close Friday, a new cycle high yesterday and a strengthening alignment in the short, medium and longer-term trend oscillators (DMI) all suggest strong (and strengthening) underlying momentum propelling the USD higher and, we expect, limiting scope for counter-trend corrections. We think minor dips to the mid/upper 1.36s are likely to remain wellsupported from here.”

Author

Sandeep Kanihama

FXStreet Contributor

Sandeep Kanihama is an FX Editor and Analyst with FXstreet having principally focus area on Asia and European markets with commodity, currency and equities coverage. He is stationed in the Indian capital city of Delhi.

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