The US dollar is on a roll this week, for a variety of reasons. The move also affects the Canadian dollar.
The team at Bank of America Merrill Lynch explains:
After 2 months of correcting, the USD Index is resuming its larger uptrend, notes Bank of America Merrill Lynch.
“The impulsive gains from 93.13 (May-14 low) turn attention to the old range lows at 96.46/96.17. Through here confirms a return to trend, targeting the March highs at 100.39 and beyond. Pullbacks should be bought and not break the 93.13 lows,†BofA projects.
It’s a similarly bullish setup in USD/CAD.
“The impulsive rebound from the confluence of support between 1.2027/1.1917 says the uptrend is trying to resume. A move above the 1.2352/1.2406 confirms a return to trend, targeting 1.2835 ahead of 1.3465,†BofA adds.
