Goldman Sachs: forecast for USD/CAD
Analysts at Goldman Sachs point out that USD/CAD has slid below the neckline of the double top pattern located in the 1.2350 area. This line will now act as resistance for the US currency which is probably starting a multi-month period of correction to the downside.
The target of the pattern lies in the 1.1900 region. There will be support at 1.2000 (38.2% Fibo of the advance from July 2014 to March 2015).
Although the pair has found some support at the 100-day MA (1.2234), Goldman will regard the pair’s attempts to recover towards 1.2350 as opportunities to sell.