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23 Aug 2013
Flash: USD/CAD primed for bullish break in week ahead – BMO Capital Markets
FXstreet.com (New York) - The USD/CAD made a bullish break through the upper end of the 5-week 1.0245/1.0445 range and now targets a move to 1.0650 which would take us back to the October 2011 highs and within sight of the 11-month old bullish channel top, suggests Greg Anderson at BMO Capital Markets.
Key quotes
“There has been a noticeable lack of a pullback in the 3 day run up from 1.0337, which leaves very short-term momentum indicators deep in overbought territory so the anticipated move to 1.0650 may be subject to some headwinds in the absence of a near term pullback.
“1.0490/1.0505 acts as immediate support into Friday while the 1.0445 breakout point and 1.0383/1.0438 fib support zone of the current 1.0276/1.0525 rally acts as primary support on any broader pullbacks. Bias is to the long side for a test of 1.0650.”
“If not already so positioned, look to use any pullback to 1.0500/1.0450 as an entry zone – suggested range next week 1.0450/1.0650.”
Key quotes
“There has been a noticeable lack of a pullback in the 3 day run up from 1.0337, which leaves very short-term momentum indicators deep in overbought territory so the anticipated move to 1.0650 may be subject to some headwinds in the absence of a near term pullback.
“1.0490/1.0505 acts as immediate support into Friday while the 1.0445 breakout point and 1.0383/1.0438 fib support zone of the current 1.0276/1.0525 rally acts as primary support on any broader pullbacks. Bias is to the long side for a test of 1.0650.”
“If not already so positioned, look to use any pullback to 1.0500/1.0450 as an entry zone – suggested range next week 1.0450/1.0650.”