21 Jul 2014
USD/CAD: Additonal gains favoured if... - BMO
FXStreet (Bali) - Matthew Perrier, FX Strategist at BMO Capital Markets, favours additional gains in USD/CAD in the weeks ahead subject to a close above a 4 month old channel top/200 dma.
Key Quotes
"The correction higher in USDCAD continued to unfold over the trading week but, as we suggested. With the 21 dma having crossed below the 100 and 200 dmas and spot below all 3 averages, the market ran into solid resistance at the 4 month old trendline (1.0801)."
"Weekly momentum indicators have only just begun to turn higher so we still favour additional gains in the weeks ahead but such a move is still predicated upon a daily close above the 4 month old channel top/200 dma."
Key Quotes
"The correction higher in USDCAD continued to unfold over the trading week but, as we suggested. With the 21 dma having crossed below the 100 and 200 dmas and spot below all 3 averages, the market ran into solid resistance at the 4 month old trendline (1.0801)."
"Weekly momentum indicators have only just begun to turn higher so we still favour additional gains in the weeks ahead but such a move is still predicated upon a daily close above the 4 month old channel top/200 dma."