The Canadian dollar suffered from falling oil prices and also from the disappointing retail sales numbers.
The team at Barclays says there is more room for weakness in the C$ – a rise in USD/CAD. Here is the rationale and the charts:
Here is their view, courtesy of eFXnews:
Currency investors should consider buying USD/CAD this week, advises Barclays Capital in its weekly FX pick to clients.
“We are bullish USDCAD and look for a move above recent range highs near 1.2700 to confirm upside traction through the year-to-date peak at 1.2800. Our targets are toward 1.3065, the highs of 2009. A move above 1.3065 would signal further upside toward greater targets near 1.346,” Barclays says as a rationale behind this call.
“An unexpected break below 1.2350, the recent range lows, would provide an opportunity to buy at better levels toward a cluster of technical support in the 1.2065/1.2090 area,” Barclays adds.
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