USD/CAD: a bottom's coming?
USD/CAD had another volatile week. After losing more than 150 pips last week the pair continued grinding generally lower. Trading took place mainly between 50% and 61.8% Fibo of the May advance.
Support for the pair lies at 1.0150 (200-week MA), 1.0110/00 and 1.0080. Resistance is at 1.0210/20, 1.0260 and 1.0285.
Analysts at TD Securities think that USD/CAD will soon bottom and then rise to 1.0600. In their view, it’s time to buy the pair.
The picture on the daily chart looks unclear, more neutral than anything. On the weekly the situation’s more inspiring. We recommend waiting for the Fed’s meeting on June19 – there may be the chance to buy lower. USD/CAD has to rise at least above 1.0220 for us to speak about a bottom.
Chart. H4 USD/CAD