1. Hello Guest Click here to check FX Binary Point Financial Directory

USD/CAD: consolidation ahead of a test of 1.50 – Westpac

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Jan 28, 2016.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

    Oct 7, 2015
    Likes Received:
    FXStreet (Edinburgh) - According to Strategist at Westpac Richard Franulovich, the pair could face a consolidative pattern ahead of a potential visit of the 1.50 handle.

    Key Quotes

    “A steady BoC hand and the sharp recovery in energy prices / risk appetite has spun the atmospherics on CAD sharply”.

    “A run at 1.50 in 2016 however remains the base case, though not before some more consolidation first”.

    “The last 18 months’ price action in USD/CAD yields some useful clues, the period encompassing three strong double digit rallies (+15/20 big figures) interspersed by a couple rangebound/countertrend episodes lasting about 3-4 months where USD/CAD unwound a good 1/3 of its earlier gains”.

    “Those metrics suggest USD/CAD can fall as far as 1.38 and trade with a broadly consolidative tone for the balance of Q1 and into Q2 before the next leg higher commences. The BoC should cut rates by mid-2016”.
    For more information, read our latest forex news.

Share This Page