Financial Advisor

USDCAD - Cautiously Bullish above 1.0487

In line with this week's bullish USDCAD call investors used a setback towards 1.0400 to refresh buying interest. This led to a fourth positive daily performance in succession and the market is trading at its highest levels for 13-months. It also took USDCAD to overbought extremes but with setbacks currently finding fresh investor demand our call is Cautiously Bullish above 1.0487.

The immediate objective is 1.0560, the overnight high, with a move beyond that point targeting 1.0592 or even towards , but probably not as high as, 1.0681.

The risk to this call is that overbought extremes begin to correct earlier and lower than currently assessed. This would be signalled by a move below 1.0487, with subsequent downside targeting 1.0432, yesterday's bottom, then towards Friday’s 1.0363 open.

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