#USDCAD @ 1.37855 : Break below 1.3650 to inspire a deeper drop – Scotiabank
…
This is a premium post.
[s2If !current_user_can(access_s2member_level4)]Please register for PREMIUM VERSION HERE to read full post below containing analysis. In case of any error or you think you are not able to read the full post below, please email us at support#nehcap.com [lwa][/s2If] [s2If current_user_can(access_s2member_level4)]
USD/CAD’s sharp appreciation through September is showing signs of flattening out. In the view of economists at Scotiabank, the pair needs to break below the 1.3650 mark to sustain further losses.
“Price action is choppy and daily/weekly trend signals are showing some signs of weakening; intraday (1 and 6-hour) DMI oscillator measures have turned decidedly flat. These signals suggest more, choppy range trading in the short run at least.”
“We note that last week’s spike high at 1.3972 was followed by the formation of a bearish key reversal signal (new cycle high, lower close) on the daily chart.”
“USD-bearish price signals are not prompting a significant reaction at this point and the longer run DMIs indicate a lot of residual upside momentum remains in this market. Still, we note the bearish reversal signal came at a sensitive point (near the 1.40 level) and that high has not been challenged again so far.”
“More obvious USD weakness (we think below 1.3650) is needed to inspire a deeper drop at this point.”
[/s2If]
Join Our Telegram Group
