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4 May 2015
USD/CAD remains a buy on dips – TDS
FXStreet (Barcelona) - FX Strategists at TD Securities, suggest adopting a buy on dips approach on USD/CAD, expecting further upside gains in the near-term.
Key Quotes
“Although USDCAD is trading slightly better offered so far this morning, we rather think the recent bounce in USDCAD can extend a little more near-term and though we cannot exclude the risk of a drop back to the 1.020 area (or even a little below) in the next few weeks, we still strongly believe in the positive outlook for the USD in the second half of the year on the basis of our expectation that the Fed will start to raise interest rates in September. We think USD dips are a buy.”
“Fundamental developments are helping steady the USDCAD exchange rate, with the recent stabilization in US-Canada spreads at the short end and in the belly of the curve the primary reason we think for the USD’s recovery back above 1.20.”
“Our fair value estimate for USDCAD today stands at 1.2133, more or less in line with prevailing spot rates.”
“USDCAD has achieved the bear objective we set out in the middle of last month following the breakdown in spot below the base of the January-April consolidation range at 1.2360.”
“Technically, price action suggests an interim low at least is forming; a strong gain over this week overall will confirm that and support the impression of a longer-term base in place.”
“Intraday, we look for support on dips to the 1.2075/00 zone. Resistance is 1.2165.”
Key Quotes
“Although USDCAD is trading slightly better offered so far this morning, we rather think the recent bounce in USDCAD can extend a little more near-term and though we cannot exclude the risk of a drop back to the 1.020 area (or even a little below) in the next few weeks, we still strongly believe in the positive outlook for the USD in the second half of the year on the basis of our expectation that the Fed will start to raise interest rates in September. We think USD dips are a buy.”
“Fundamental developments are helping steady the USDCAD exchange rate, with the recent stabilization in US-Canada spreads at the short end and in the belly of the curve the primary reason we think for the USD’s recovery back above 1.20.”
“Our fair value estimate for USDCAD today stands at 1.2133, more or less in line with prevailing spot rates.”
“USDCAD has achieved the bear objective we set out in the middle of last month following the breakdown in spot below the base of the January-April consolidation range at 1.2360.”
“Technically, price action suggests an interim low at least is forming; a strong gain over this week overall will confirm that and support the impression of a longer-term base in place.”
“Intraday, we look for support on dips to the 1.2075/00 zone. Resistance is 1.2165.”