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29 Jul 2015
Buy the dips in USD/CAD – TDS
FXStreet (Edinburgh) - Strategists at TD Securities suggested buying the pair on occasional pullbacks.
Key Quotes
“We got a partial liquidation in USDCAD longs that we have been expecting with yesterday’s selloff that has taken us down to key support at the 1.2920 level (which is marginally higher than our daily fair value estimate at the figure)”.
“This is an extension of a theme that we have seen on a broader basis over the last few days and the price action yesterday pulled in the remaining few holdouts (CAD, NZD, AUD)”.
“The selloff in funds has opened up greater two-way risk, and a break below the 1.29 level should be viewed as nontrivial and may be a situation that is driven by passive stop-loss activity rather than active risk taking ahead of the Fed”.
“Ultimately, this leaves the path towards more sustainable gains in USDCAD (and USD strength vs. commodities as well)”.
Key Quotes
“We got a partial liquidation in USDCAD longs that we have been expecting with yesterday’s selloff that has taken us down to key support at the 1.2920 level (which is marginally higher than our daily fair value estimate at the figure)”.
“This is an extension of a theme that we have seen on a broader basis over the last few days and the price action yesterday pulled in the remaining few holdouts (CAD, NZD, AUD)”.
“The selloff in funds has opened up greater two-way risk, and a break below the 1.29 level should be viewed as nontrivial and may be a situation that is driven by passive stop-loss activity rather than active risk taking ahead of the Fed”.
“Ultimately, this leaves the path towards more sustainable gains in USDCAD (and USD strength vs. commodities as well)”.