1. Hello Guest Do you know binary.com offers exclusive $20 No Deposit Bonus for FX Binary Point visitors? Click here to sign up

Australian dollar's technicals do not look as constructive as the Canadian dollar - BBH

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Jan 4, 2016.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

    Joined:
    Oct 7, 2015
    Messages:
    27,524
    Likes Received:
    0
    FXStreet (Delhi) – Research Team at BBH, notes that the Canadian dollar is the worst performing major currency in 2015, depreciating 16% against the US dollar.

    Key Quotes

    “It has been dragged down by the Bank of Canada rate cuts, and arguably the anticipation of another one in 2016, widening discount to the US on two-year borrowings, and the drop in oil prices.”

    “There is some technical reason to look for near-term correction for the Canadian dollar. The RSI and MACD are moving lower for the US dollar. The five-day moving average may cross below the 20-day average next week. We suspect momentum players have not adjusted to the improved technical readings. A break of CAD1.3800, and especially CAD1.3770, would likely begin forcing the Canadian shorts to cover. There may be some support near CAD1.3730 on its way toward CAD1.3660.”

    “The Australian dollar's technicals do not look as constructive as the Canadian dollar. For the last third of 2015, the Aussie traded in a $0.7000-$0.7400 trading range but has not closed below $0.7100 since mid-November. It had a good run in over the last couple of weeks, moving from the lower end its range to the upper end, reaching almost $.7330 at the end of last week. We think would more surprised by a break of $0.7400 than a grind back toward $0.7200.”


    For more information, read our latest forex news.
     

Share This Page