USD/CAD: More upside in store? - Commerzbank

Axel Rudolph, senior analyst at Commerzbank, points out that the USD/CAD’s rally off its October low at 1.2783 has taken it above the June and November highs at 1.3358/86 to its current December high at 1.3445.

Key Quotes

“This level we expect to soon be exceeded with the November and December 2016 highs at 1.3588/97 then being in sight. Still further up lies the May 2017 peak at 1.3791.”

“Immediate upside pressure will be maintained while the cross trades above the current December low at 1.3161. Minor support below the 1.3161 low and the mid-November low at 1.3128 can be seen at the November low at 1.3050. Further support lies around the 200 day moving average at 1.3025.”