Further gradual rise favoured in USD/CAD
However, the change in BoC’s communication suggests that the central bank is getting less aggressive in talking down the Canadian dollar. As a result, even if the USD/CAD is expected to move higher towards 1.1500 (psychological threshold), possibly 1.1725 (08/07/2009 high), the rate of ascend is likely to be slow. This can be seen by the recent lack of followthrough after the bullish breakout of the resistance at 1.1279. As a result, USD/CAD looks attractive on the long side only on weakness. Currently, a key support stands at 1.1072 (02/10/2014 low), as it is also close to a rising trendline.
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