Short term
Trade view / 19 June 2015 at 7:56 GMT

#SaxoStrats: USDCAD set for the upside

Head of FX Strategy / Saxo Bank
Denmark
Instrument: USDCAD
Price target:
Market price:

Background

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.

Parameters

Entry: 1.2210-30.

Stop: 1.2121.

Target: 1.2390 and 1.2495.

Time horizon: One week.

Two-month chart
n












USDCAD has pushed back through the 122.00 mark. Source: Saxo Bank

Five-year chart.

v



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 moreu


4y
Gwen Gwen
This comment has been redacted
4y
Michael O'Neill Michael O'Neill
Mr Hardy: Your first chart is EURJPY, not USDCAD. Just letting you know.
4y
Martin O'Rourke Martin O'Rourke
Not sure how that happened but we have now fixed.
4y
Mr. 4000 Percent Mr. 4000 Percent
John J Hardy you beast of a man. Its been going up since awhile ago and after Canada reports. Well done sir!

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