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22 Jan 2015
USD/CAD on the way to 1.3000?
FXStreet (Guatemala) - USD/CAD is currently 1.2306 with a high of 1.2390 and low of 1.2312 and up 0.26%.
The Canadian dollar is consolidated above 1.2310/20 support and is battling for space above the mid point of the handle while having scored earlier highs of 1.2390. Indeed we are within a sideways channel here after the BoC cut interest rates yesterday do 0.75% from 1% and surprised the markets by doing so.
The upside remains in tact and the potential for further advances towards 1.3000 is seen as ultimate target in the medium term. Analysts at TD Securities explained that the longer-term charts reinforce the upside potential still facing the USD with the market poised to hold the break above 1.2200, the ultimate retracement of the 2009/2011 move lower. "There is really no major resistance points in the way of a move back above 1.30 from here. Bullish trend momentum signals suggest—strongly—that there is a fair bit more mileage in the long USD trade from here."
The Canadian dollar is consolidated above 1.2310/20 support and is battling for space above the mid point of the handle while having scored earlier highs of 1.2390. Indeed we are within a sideways channel here after the BoC cut interest rates yesterday do 0.75% from 1% and surprised the markets by doing so.
The upside remains in tact and the potential for further advances towards 1.3000 is seen as ultimate target in the medium term. Analysts at TD Securities explained that the longer-term charts reinforce the upside potential still facing the USD with the market poised to hold the break above 1.2200, the ultimate retracement of the 2009/2011 move lower. "There is really no major resistance points in the way of a move back above 1.30 from here. Bullish trend momentum signals suggest—strongly—that there is a fair bit more mileage in the long USD trade from here."