FX Monthly (May ’16)
USD/CAD has traded lower as anticipated, with prices currently finding support around 1.2500 as oversold studies flatten.
Steady gains have reached 1.3000, but any further gains are expected to find difficulty sustaining a break above the 1.3217 high of April as the Tension Indicator weakens and bearish longer term studies continue to fall.
In the coming months, fresh losses are looked for, as the sharp bear trend from January dominates investor sentiment and investors maintain a sell-into-strength strategy, with a break below 1.2500 opening up lows down to the 1.2050 retracement and the psychological 1.2000 level.
To access the full report, covering the USD Index DXY, GBP/USD, EUR/USD, AUD/USD, USD/JPY, USD/CHF and USD/CAD, please click here.