In line with yesterday's bearish outlook for sentiment, Tuesday’s
limited rally was entirely overturned by fresh selling interest. Steady
losses throughout the day took USDCAD to the most bearish levels traded
for three weeks. The speed and scope of this decline also took the
currency pair to oversold intraday extremes and overnight trading has
seen the market attempt to correct that situation. This rally is likely
to be temporary but it does leave the immediate bias positive. In view
of this our call is Very Cautiously Bullish above 1.0133 The immediate
objective is 1.0208, the overnight high, with a move beyond that point
targeting 1.0239, half of yesterday's net fall, or even towards 1.0281.
Selling through 1.0133, yesterday's low,, is the risk to this call as it signals that selling pressure is greater than currently assessed. The market should then decline to 1.0108 then towards 1.0035.
Selling through 1.0133, yesterday's low,, is the risk to this call as it signals that selling pressure is greater than currently assessed. The market should then decline to 1.0108 then towards 1.0035.
No comments:
Post a Comment