18 Aug 2015
USD/CAD near-term outlook neutral to bullish – Scotiabank
FXStreet (Edinburgh) - Currency Strategist at Scotiabank Eric Theoret has reiterated the neutral-to-bullish near term stance of the pair.
Key Quotes
“The broader market tone appears increasingly sensitive to renewed turbulence in China, presenting downside risk to the broader commodity complex and thus leaving CAD vulnerable to a near term adjustment in the event of a continued decline in oil prices”.
“USDCAD is rising off support near its short term MA’s, with both the 9 (1.3074) and 21 day (1.3060) seen as providing near term support”.
“Momentum indicators are conflicted, however we note that the MACD is largely neutral with the RSI climbing to one week highs near 59. Near term resistance is expected at 1.3150, beyond which we would look to the recent highs above 1.3200”.
Key Quotes
“The broader market tone appears increasingly sensitive to renewed turbulence in China, presenting downside risk to the broader commodity complex and thus leaving CAD vulnerable to a near term adjustment in the event of a continued decline in oil prices”.
“USDCAD is rising off support near its short term MA’s, with both the 9 (1.3074) and 21 day (1.3060) seen as providing near term support”.
“Momentum indicators are conflicted, however we note that the MACD is largely neutral with the RSI climbing to one week highs near 59. Near term resistance is expected at 1.3150, beyond which we would look to the recent highs above 1.3200”.