Financial institution of America International Analysis discusses USD/CAD technical outlook and adopts a sell-on-rallies bias by means of Q2.
“We beforehand mentioned a bias to fade USDCAD rallies within the 1.29s
as wave 5 of the sample was estimated to finish there. On March 8
spot traded to 1.2901 and turned decrease. We weren’t fast sufficient to get
quick earlier than the flip however since then the market has been chasing it
decrease. The 200d SMA and pattern line are damaged and a bearish continuation
sample confirmed. We proceed to love fading USDCAD rallies for draw back in Q2,” BofA notes.
“Since 1999, USDCAD was down in April 17 of 23 occasions or 74% of the
time, lacked seasonal pattern in Might and was down in June 15 of 23 occasions
or 65% of the time. In Q2, USDCAD was down 16 of 23 occasions or 70% of the
time. CAD was additionally robust in opposition to NOK, JPY and MXN in Q2,” BofA provides.
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