Dollar/CAD reached higher last week, but never hit the cycle highs.
Has the pair topped out? The team at Goldman explains with a chart:
Here is their view, courtesy of eFXnews:
The setup in USD/CAD favors lower levels, but momentum has been slow and disappointing, notes Goldman Sachs.
“The market has spent a week consolidating near the 1.2771-1.2835 resistance level which includes an ABC from May and the previous Jan./Mar. highs. Moreover oscillators are at the top of their range and attempting to cross lower,” GS adds.
“Overall, this looks like it should be the perfect setup for a top to develop however it’s also irrefutable that momentum has been weak. Need to hold below 1.2771-1.2835 to maintain this bearish outlook,” GS argues.
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