USD/CAD: To Struggle Back Above 1.30; 1.32 Break ‘Serious’ Challenge

USD/CAD shot higher on the dovish words of BOC Governor Stephen Poloz. But can it go even higher? Here is the view from BTMU:

Here is their view, courtesy of eFXnews:

BTMU Research discusses USD/CAD outlook, and notes that that its valuation model based on the higher price of oil alone suggests that USD/CAD should currently be trading closer to the 1.2000-level rather than the 1.3000-level.

“At the current juncture, we still expect NAFTA talks to make further progress this year although acknowledge that the risk of an unfavourable outcome has increased.

In these circumstances, we still believe that USD/CAD will struggle to sustain levels back above the 1.3000 while the US dollar continues to weaken more broadly, BTMU argues.

Our bearish outlook for USD/CAD would be more seriously challenged by a breach of the 1.3200-level, which represents the next important technical resistance level beyond 1.3000,” BTMU adds.

Disclosure: Foreign exchange (Forex) trading carries a high level of risk and may not be suitable for all investors. The risk grows as the leverage is higher. Investment objectives, risk ...

How did you like this article? Let us know so we can better customize your reading experience. Users' ratings are only visible to themselves.


Leave a comment to automatically be entered into our contest to win a free Echo Show.