Axel Rudolph, Senior Analyst at Commerzbank, assessed the prospects for the pair.
Key Quotes
“In early May USD/CAD‘s advance has nearly taken it to the early March high at 1.3001 before it dropped to the current May low at 1.2730 before rallying again”.
“Once the recent high at 1.3001 has been overcome, the long term downtrend line at 1.3056 and the March high at 1.3124 will be in focus”.
“The next higher 1.3588/97 November and December 2016 highs remain our longer term upside targets for the course of this year, provided that the April low at 1.2529 underpins”.
“Only unexpected failure there would put the 1.2452/40 mid-February low and the 78.6% Fibonacci retracement on the cards. This is not our preferred view, though”.
“Further support can be spotted at the 1.2357 early January low and also at the 1.2254 January trough. While it underpins we will retain our longer term still bullish view”.
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