What is the outlook for the US dollar, specifically USD/JPY and USD/CAD?
Here is their view, courtesy of eFXdata:
TD Research flags 107.30 level in USD/JPY as a near-term attractor level, while maintains a structural bullish bias on USD/CAD.
“We are still somewhat surprised to see USDJPY heavy while stocks remain bid. Looking forward, we think 107.30 (+/-) could become a near-term attractor as this represents (minor) trendline support off the early May lows,” TD notes.
“USDCAD rejected another probe below 1.39. Technically, the charts point to a descending triangle. While a break of support around 1.3850 could be significant we have yet to hear an argument as to why you would want to own CAD. With stocks at their post-crash highs and USDCAD trading where it is, a lot of good news is in the price whatever good news that may be. With that in mind, we remain focused on upside risks overall. We think 1.3970/00 will be the first notable topside threshold for the pair, that will put 1.4050/80 daily downtrend resistance into focus,” TD adds.
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