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2 Jul 2014
USD/CAD: downward trend is too strong to fight - Scotiabank
FXStreet (Córdoba) - Camilla Sutton, analyst at Scotiabank commented that the bearish bias in USD/CAD is strong and thus is too seen to pick a bottom, but they don't expect the CAD to sustain those levels for long.
Key Quotes
“USD/CAD from here—the downward trend is too strong to fight and accordingly
it is too soon to pick a bottom; however we do not expect USD/CAD to sustain these levels for long”.
“The BoC and exporters are likely uncomfortable as the economy is not strong enough to sustain these CAD levels. We would expect USD/CAD to have retraced some of its recent loses by the July 16th BoC meeting”.
“USD/CAD short‐term technicals: bearish—technical studies warn of further downside risk; however the RSI at 21 is warning of oversold levels— see chart. We would not fight the trend; but see current levels as ripe for profit taking. Support lies at 1.0600; resistance comes in at 1.0700”.
Key Quotes
“USD/CAD from here—the downward trend is too strong to fight and accordingly
it is too soon to pick a bottom; however we do not expect USD/CAD to sustain these levels for long”.
“The BoC and exporters are likely uncomfortable as the economy is not strong enough to sustain these CAD levels. We would expect USD/CAD to have retraced some of its recent loses by the July 16th BoC meeting”.
“USD/CAD short‐term technicals: bearish—technical studies warn of further downside risk; however the RSI at 21 is warning of oversold levels— see chart. We would not fight the trend; but see current levels as ripe for profit taking. Support lies at 1.0600; resistance comes in at 1.0700”.