20 Mar 2015
USD/CAD stance remains bullish – Scotiabank
FXStreet (Edinburgh) - In the view of Eric Theoret, Currency Strategist at Scotiabank, the perspective for USD/CAD is positive from a technical analysis.
Key Quotes
“BoC policy expectations are biased to further easing, as OIS are pricing in an 85% chance of a 25bpt rate cut over the next 12 months”.
“We also note the risk of further weakness in oil, currently the strongest of typical CAD drivers with a 0.90 correlation on a 30 day rolling basis”.
“Focus is on the 9 day MA (1.2716) for clues to the near term direction, followed by potential resistance at Wednesday’s open 1.2788”.
“We note the failure to maintain the recent decline below the 21 day MA (1.2603) and highlight the formation of a bullish weekly hammer doji candle”.
Key Quotes
“BoC policy expectations are biased to further easing, as OIS are pricing in an 85% chance of a 25bpt rate cut over the next 12 months”.
“We also note the risk of further weakness in oil, currently the strongest of typical CAD drivers with a 0.90 correlation on a 30 day rolling basis”.
“Focus is on the 9 day MA (1.2716) for clues to the near term direction, followed by potential resistance at Wednesday’s open 1.2788”.
“We note the failure to maintain the recent decline below the 21 day MA (1.2603) and highlight the formation of a bullish weekly hammer doji candle”.