Dollar/CAD is undergoing a recovery or a correction if you wish. Nevertheless, it got stuck and the pair is now trading sideways. The team at TD has a trading idea:
Here is their view, courtesy of eFXnews:
TD FX Strategy Research notes that USD/CAD failed to make a convincing break of the key 1.274, briefly marking some time below 1.27.
“This week the focus shifts back to local data, with July CPI likely to get close attention. TD expects a dovish print against market expectations, which is liable to benefit USDCAD. This could intensify the recent squeeze in the pair, especially since CAD looks expensive to data momentum and positioning looks overextended.
Fd minutes and retail sales are likely to send offsetting signals, so we look to buy into USDCAD dips with support seen near 1.265. We still need a convincing upside break of the 1.274 level to signal a push to 1.29,” TD advises.
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