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19 May 2015
USD/CAD keeps the neutral bias – Westpac
FXStreet (Edinburgh) - In the view of strategists at Westpac, the outlook on the USD/CAD remains neutral in the near term.
Key Quotes
“A break of 1.1940 in USD/CAD, a key support level extending back to the BoC’s surprise rate cut in January, would likely open the door to further substantial losses”.
“Even though we doubt the Canadian economy will bounce back as quickly as BoC Gov Poloz seems to think the increasingly grim USD picture warns that USD/CAD may well trade lower in coming weeks”.
“Suspect CAD will struggle on most crosses though, amid questionable local growth momentum as the weakness in the energy patch bleeds through the broader economy”.
“Multiple tests of key support at 1.1980/00 (major Fibonacci retracement / 1 year uptrend support) throughout May have failed to break on a weekly closing basis. Interim downtrend in USD/CAD looks exhausted. Neutral bias”.
Key Quotes
“A break of 1.1940 in USD/CAD, a key support level extending back to the BoC’s surprise rate cut in January, would likely open the door to further substantial losses”.
“Even though we doubt the Canadian economy will bounce back as quickly as BoC Gov Poloz seems to think the increasingly grim USD picture warns that USD/CAD may well trade lower in coming weeks”.
“Suspect CAD will struggle on most crosses though, amid questionable local growth momentum as the weakness in the energy patch bleeds through the broader economy”.
“Multiple tests of key support at 1.1980/00 (major Fibonacci retracement / 1 year uptrend support) throughout May have failed to break on a weekly closing basis. Interim downtrend in USD/CAD looks exhausted. Neutral bias”.