USD/CAD: Market remains on the defensive – Commerzbank

Karen Jones, analyst at Commerzbank, explains that the USD/CAD pair has failed to maintain a break above the 1.3386 June high, thereby leaving the market on the defensive and attention has reverted to the 55 day at 1.3302.

Key Quotes

“The recent high lies at 1.3467 and only a close above here will trigger a rally towards the 1.3661/64 December highs.”

“Below the 55 day ma will trigger a slide back to the 200 day ma at 1.3182 and the 1.3140 2018-2019 uptrend. This guards the current February low at 1.3070 and the 1.3072/97 55- and 200-week moving averages.”

“We still believe that a significant top has been formed with the October low at 1.2783 medium-term remaining in focus. En route is the April 2018-19 support line at 1.3124.”