USD/CAD: Bottom fishing - Rabobank

Analysts at Rabobank provide a brief technical outlook for trading USD/CAD in the short-term.

Key Quotes:

“USD/CAD continues to bob along the 1.30 level but has still failed to close below there. Regular readers will know we have been looking for a confirmed close below 1.30 (a close followed by a subsequent lower close) before saying a new range with a low of 1.28 has formed.”

“Indeed, although there is a risk we do see a close below 1.30, our bias is that this level is likely to hold and instead we expect to see a move back up towards 1.34 in the coming months. On the top side, 1.3575 is still key with a confirmed close north of there opening up a test of the 1.36 handle.”

“Figure 5 shows the USD/CAD daily chart and on Friday we saw the Bloomberg Trendstall indicator point to slowing downside pressure on the pair that could turn to a reversal over the coming days.”