USD/CAD: Short-term stabilisation - Commerzbank

Axel Rudolph, senior analyst at Commerzbank, suggests that they have decided to neutralise their short-term forecast for USD/CAD as since it’s fall to the current February low at 1.3070 has been accompanied by positive divergence on the daily RSI.

Key Quotes

“While the 55 day moving average and the late January high at 1.3347/73 cap, however, we will retain our medium-term bearish outlook.”

“We still believe that a significant top has been formed with the October low at 1.2783 medium-term remaining in focus. En route is the 2018-19 support line at 1.2980.”

“Minor resistance below the 55 day moving average at 1.3347 can be seen at the September high at 1.3225. Resistance above the 1.3373 late January high comes in at the 1.3445 early December high.”