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Morgan Stanley Chart Of The Week: Buying USD/CAD

The Canadian dollar has  weathered the recent weakness  in oil prices, but can it last_

The team at Morgan Stanley suggests buying Dollar/CAD this week:

Here is their view, courtesy of eFXnews:

Morgan Stanley picks USD/CAD as its technical FX chart of the week, where MS is bullish and long tactically and structurally  MS provides the key levels where traders should consider buying the pair and placing their stops and targets accordingly.

On the 10-year USD/CAD chart:

The longer-term picture for USDCAD is bullish, and we recommend buying on any dips.Currently in a C-wave, the structure has exceeded the previous A-wave top at 1.3065. The current C-wave is incomplete since we believe it is still in a 3 rd wave. Our longer-term bullish analysis would be incorrect on a dip toward the low at 1.19,” MS advises.

USDCAD 10 year chart August 2015 technical Canadian dollar trading

On the 2-year USD/CAD chart:

“USDCAD has large upside momentum as it is within a 3 rd wave of a larger 3rd wave. We target 1.40 in our strategic recommendations. A move below the 1 st wave high at 1.2835 would suggest that the near-term momentum may have faded, so we would have to wait for a larger dip to buy,” MS  adds.

Dollar CAD 2 year chart Auguust 2015 technical chart

On the 90-day USD/CAD chart:

We believe that USDCAD is in a sub-iiird wave that is incomplete. The dip toward 1.30 has provided a buying opportunity. Positioning in CAD is relatively light with our own tracker currently at -2. A move back above the 1.32 high should provide further upside momentum, in our view. We buy USDCAD and target 1.40,” MS projects.

USD CAD 90 day chart Canadian dollar technical graph chart

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Yohay Elam

Yohay Elam

Yohay Elam: Founder, Writer and Editor I have been into forex trading for over 5 years, and I share the experience that I have and the knowledge that I've accumulated. After taking a short course about forex. Like many forex traders, I've earned a significant share of my knowledge the hard way. Macroeconomics, the impact of news on the ever-moving currency markets and trading psychology have always fascinated me. Before founding Forex Crunch, I've worked as a programmer in various hi-tech companies. I have a B. Sc. in Computer Science from Ben Gurion University. Given this background, forex software has a relatively bigger share in the posts.