USD/CAD might see 1.20 levels – TDS

FXStreet (Barcelona) - Shaun Osborne and Martin Schwerdtfeger, FX Strategists at TD Securities, remain bullish on USD/CAD, and feel that the pair might see 1.20 levels soon.

Key Quotes

“We remain bullish on the outlook for USDCAD; after consolidating for much of the time since mid-December, USDCAD is testing the upper boundaries of the technical trend in place for much of H2 2014 again.”

“USDCAD is approaching the long-term technical targets we outlined in August last year but the risk of an overshoot is significant, considering the broader USD trend.”

“The underlying trend indicators are bullish and we have to think that scope for counter-trend corrections remains limited at the present time as a consequence (low/mid 1.17s).”

“The 1.20 area looks reachable for USDCAD—and possibly quite soon, considering the CAD’s weak January track record.“

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