The Canadian Dollar is on the back foot due to Trump’s tariffs and worsening relations. How low can it go?
Here is their view, courtesy of eFXdata:
Bank of America Merrill Lynch discusses USD/CAD technical outlook and flags an impulsive bullish setup suggest further USD/CAD rallies.
“Looking back over the medium term, five waves higher during 2011-2016 and 3 corrective waves lower to the 2017 low (abc) is complete. Now a new set of five waves higher is underway. We see the current uptrend in wave (III), having already completed wave (I) and (II) from Sept-17 to Feb-18.
USD/CAD is in the impulsive part of an uptrend where technicals expect a strong rally. This part of the impulsive trend is known as the “3 of III” and Fibonacci estimates two targets of 1.3433 and 1.3634,” BofAML argues.
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