USD/CAD: ahead of the new highs
USD/CAD bulls made another go at multi-year highs above 1.1170, but then were pulled back to the 1.1140 area. The pair has been rising during the recent month on the divergence between more hawking stance of the Fed and the dovish inclinations of the Bank of Canada.
If the Fed reduces QE, as expected, USD/CAD may reach the psychological mark of 1.1200. TD Securities says that intraday support in the 1.1115/20 area now and note that short-term, bullish trend momentum signals are picking up again and aligning with the still bullishly-oriented longer-term signals. The outlook will remain positive as long as the pair is above 1.1050. “The technical signals look to have the makings of another powerful leg higher in USD/CAD”, said the specialists.
Chart. Daily USD/CAD