USD/CAD: Upside breaks to allow 1.1280 - JPMorgan

FXStreet (Bali) - Niall O'Connor, FX Strategist at JP Morgan, notes an important setup for USD/CAD after the break of resistance at 1.1100/25 area, now allowing 1.1280 highs and even beyond.

Key Quotes

"While CAD has lagged the underperformance trends against the USD given the persistent declines in AUD/CAD and NZD/CAD, we sense a sustained break of this area should confirm a deeper recovery phase."

"This area represents the mid-September high and the 76.4% retracement of the decline from the March peak. Upside breaks should allow for a closer test, if not break of that 1.1280 high."