USD/CAD risks a move lower while below 1.2550/60 – TDS

FXStreet (Barcelona) - FX Strategists at TD Securities see downside risks to the broader USD rebound unless USD/CAD is able to recover above 1.2550/60.

Key Quotes

“Our fair value estimate for USDCAD (of which spreads are an important variable) stands at 1.2437—bang in line with spot—this morning. While spreads remain so firm, we see little scope for USDCAD to ease significantly. Softer crude oil prices should also help to underpin USDCAD in the early part of the session today at least.”

“On the charts, we see support intraday at 1.2425/30 but the rejection at 1.2550/60 last week looks quite impressive overall and risks denting the recent, broader rebound in the USD unless the market can quickly make progress beyond that point. Intraday gains above 1.2475 may see the mid 1.25s retested.”

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