TD Securities: bullish on USD/CAD
On Monday USD/CAD rebounded towards the 1.0100 mark. According to analysts at TD Securities, reversal from 1.0050 last week has provided a firm base for the market ahead of medium-term support around the parity zone (200-day SMA). The next resistance lies at 1.0150.
In their view, the US economy will be growing much quicker than Europe and Japan in 2014, regardless of the recent weaker-than-expected US data including Q1 GDP. Conversely, Canada is expected to underperform in the months ahead with Canada’s large current account deficit.
Chart. Daily USD/CAD