4 Feb 2016
USD/CAD: buy the dips towards 1.3435 – TDS
In opinion of Ned Rumpeltin, Strategist at TD Securities, a drop to 1.3435 could represent a good opportunity to buy the pair.
Key Quotes
“On USDCAD, we view the 1.38 region as an important area of support. Below that mark, we note the 1.3435 ‘melt up’ level from early last December could become the next primary attractor on the downside”.
“This should provide stiff support, however, and have us looking to reenter strategic long positions as Canadian policymakers might grow increasingly concerned with CAD strength below that threshold”.
“On slightly longer horizons, however, we continue to think the 1.43 area represents a more stable equilibrium value for spot”.
Key Quotes
“On USDCAD, we view the 1.38 region as an important area of support. Below that mark, we note the 1.3435 ‘melt up’ level from early last December could become the next primary attractor on the downside”.
“This should provide stiff support, however, and have us looking to reenter strategic long positions as Canadian policymakers might grow increasingly concerned with CAD strength below that threshold”.
“On slightly longer horizons, however, we continue to think the 1.43 area represents a more stable equilibrium value for spot”.