Axel Rudolph, senior analyst at Commerzbank, explains that the USD/CAD’s rally off its October low at 1.2783 has taken it to its November high at 1.3358, before dropping to its current December low at 1.3161, only to then rise again.
Key Quotes
“The June and November highs at 1.3358/86 will be targeted while the recent low at 1.3161 underpins. Once the 1.3386 level has been exceeded, the November and December 2016 highs at 1.3588/97 will be targeted.”
“Minor support below the 1.3161 low and the mid-November low at 1.3128 can be seen between the 55 day moving average and the November low at 1.3096/50.”
“Further support lies around the 200 day moving average at 1.3012. Still further support sits between the August, September and mid-October lows at 1.2918/1.2885. While this area underpins we will retain our bullish forecast.”
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