Dollar/CAD is trading on high ground, at the 1.27 handle. It still hasn’t tackled the cycle high of 1.2834.
The team at Nomura foresees a pullback in their technical analysis:
Here is their view, courtesy of eFXnews:
USD/CAD rally is stalling at a confluence of resistance from March highs and symmetry targets, notes Nomura.
“The rally from 1.2128 to 1.2771 has met equality with the previous rally from 1.1929. This and the fact that 5-waves up has been satisfied suggests a pullback ahead. There is also proper RSI divergence between waves-3 & 5,†Nomura adds.
“S/t, a pullback to 1.2531 would be ideal and meet pivot and Fib support. The 38.2% retracement aligns nicely with the previous wave-4 low so this level could mark a pullback low going forward,†Nomura projects.
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