Dollar/CAD is not too far from the highs and this is tied to falling oil prices.
But perhaps that’s it? The team at Westpac examines:
Here is their view, courtesy of eFXnews:
USD/CAD has produced LT momentum failures at the 2015 highs, notes Westpac.
“As such we have been on alert for any indication that the recent rally is topping out, as this may have longer lasting implications.
This week we have seen USDCAD top out at 1.3436. The previous 2015 high and multi-year high was 1.3657. A bearish 3 day topping pattern was completed this week in rejecting the high.
ST momentum indicators have shifted to a negative bias this week,†WP adds.
“1.3425/75 should remain a major top. Risk now reverts to the downside and a decline towards the 1.2850 / 1.3050 range over a multiweek time frame,†WP argues.
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