#SaxoStrats: USDCAD set for the upside
USDCAD posted a bullish, hammer reversal yesterday in line with a broad USD comeback. This reversal came after breaking the local 1.2200 area support – so the move back above suggests 1.2200 is a key support area.
The ability for the greenback to post a comeback despite recent negative news flow suggests that longer term USD bulls are finding value in getting involved here and we buy USDCAD with a view to a return back to the higher side of the range toward 1.2500.
Management and risk description
Volatility on two data points out of Canada today (Retail Sales and CPI), rise in oil prices, etc.
Target: 1.2390 and 1.2495.
Time horizon: One week.
USDCAD has pushed back through the 122.00 mark. Source: Saxo Bank
USDCAD has been on a steady upward trajectory since late 2012. Source: Saxo Bank
— Edited by Martin O'Rourke
Non-independent investment research disclaimer applies. Read more