USD/CAD: Break below 1.2517 to enhance bearishness – DBS Bank

USD/CAD’s inability to surmount a resistance window 1.2899-1.2952 has led to USD bears reasserting control. A downward thrust under 1.2517 should enhance bearishness, Benjamin Wong, Strategist at DBS bank, reports.

Key quotes

“1.2899 offers resistance of sorts. Together with 1.2952, they are levels to cross if USD aspires to turn around the bearish outlook since it topped out at 1.4668 last March. Against the current levels, the resistance is coming lower at 1.2672 and 1.2746.”

“A downward thrust well under 1.2517 is all the market needs to reassert a stronger dose of USD weakness in order for the next Fibonacci marker at 1.2385 to be probed and to be en route through the 100-month moving average of 1.2471.”