Economists at TD Securities remain topside focused as the fundamental outlook will require higher USD/CAD.
“Technically, the USD/CAD pair is beginning to look like it has put in good work to carve out a trough just below 1.40 with a triple bottom formation. Another run through 1.41 also looks constructive from a price action point of view.”
“More confidence would build should the 1.4265/00 pivot area fail to hold. This region has proven to be difficult to breach. We do think this will inevitably happen and we remain content in advocating a buy-on-dips stance in USD/CAD as we think the USD-leg will remain bid on a broad basis.”