4 Aug 2015
USD/CAD retains its bullish outlook – Scotiabank
FXStreet (Edinburgh) - Eric Theoret, Currency Strategist at Scotiabank, sees the pair poised for further strength in the near term.
Key Quotes
“Political uncertainty will provide for greater medium-term risk to CAD as we move toward the October 19 federal election, and we note that measures of implied CAD volatility have climbed back toward the upper end of their multi-month range”.
“However, options prices are not hinting to greater demand for protection from downside movement in CAD”.
“As such, near term risk for CAD lies with oil prices ahead of domestic trade and employment releases through the end of the week”
“The fresh highs in USDCAD are not being confirmed by momentum indicators, providing for negative divergence”.
“However near term risk remains bullish in the absence of a break below the 21 day MA (1.2928). There are few near term resistance levels, shifting the focus to the long-term 61.8% Fibo retracement level of the 2002-2007 decline at 1.3467”.
Key Quotes
“Political uncertainty will provide for greater medium-term risk to CAD as we move toward the October 19 federal election, and we note that measures of implied CAD volatility have climbed back toward the upper end of their multi-month range”.
“However, options prices are not hinting to greater demand for protection from downside movement in CAD”.
“As such, near term risk for CAD lies with oil prices ahead of domestic trade and employment releases through the end of the week”
“The fresh highs in USDCAD are not being confirmed by momentum indicators, providing for negative divergence”.
“However near term risk remains bullish in the absence of a break below the 21 day MA (1.2928). There are few near term resistance levels, shifting the focus to the long-term 61.8% Fibo retracement level of the 2002-2007 decline at 1.3467”.