25 Feb 2015
USD/CAD immediate downside target 1.2350/55 – UOB
FXStreet (Barcelona) - Analysts at UOB Group expect a deep pull-back for USD/CAD below the 1.2350/55 low seen earlier this month.
Key Quotes
“USD/CAD touched a high of 1.2662 yesterday before dropping sharply on the back of Poloz’s comments. Market seems to have pared back the expectation of further rate cut by BOC and with daily MACD (and other indicators) still holding deeply in negative territory, the current set-up argues for a deep pull-back in the coming weeks.”
“The immediate target is for a break below the 1.2350/55 low seen earlier this month but looking further ahead, a move towards 1.2200 will not be surprising.”
“That said, any down-move is viewed as part of a corrective down-move from a longer term perspective and not the start of major reversal.”
“Oversold short-term conditions could lead to a rebound first but as long as 1.2620 is not taken out, the risk for this pair is clearly on the downside for now..”
Key Quotes
“USD/CAD touched a high of 1.2662 yesterday before dropping sharply on the back of Poloz’s comments. Market seems to have pared back the expectation of further rate cut by BOC and with daily MACD (and other indicators) still holding deeply in negative territory, the current set-up argues for a deep pull-back in the coming weeks.”
“The immediate target is for a break below the 1.2350/55 low seen earlier this month but looking further ahead, a move towards 1.2200 will not be surprising.”
“That said, any down-move is viewed as part of a corrective down-move from a longer term perspective and not the start of major reversal.”
“Oversold short-term conditions could lead to a rebound first but as long as 1.2620 is not taken out, the risk for this pair is clearly on the downside for now..”