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3 Aug 2015
USD/CAD could test 1.40 in the longer run – BBH
FXStreet (Edinburgh) - In light of the recent strong advance in USD/CAD, analysts at BBH belives the pair could visit the 1.40 area in the longer run.
Key Quotes
“In response to the drop in oil prices and news that the economy contracted in May, the US dollar posted an outside up day (traded on both sides of the previous day's range and closed above the previous day's high) before the weekend against the Canadian dollar”.
“The US dollar is at new multi-year highs. To the extent that resistance denotes where (US dollar) supply may come in, technical levels may not be particularly helpful”.
“We have suggested the next objective is near CAD1.3450, and see potential toward CAD1.40 over the long-term”.
Key Quotes
“In response to the drop in oil prices and news that the economy contracted in May, the US dollar posted an outside up day (traded on both sides of the previous day's range and closed above the previous day's high) before the weekend against the Canadian dollar”.
“The US dollar is at new multi-year highs. To the extent that resistance denotes where (US dollar) supply may come in, technical levels may not be particularly helpful”.
“We have suggested the next objective is near CAD1.3450, and see potential toward CAD1.40 over the long-term”.