Thursday, May 21, 2009

Citigroup and Morgan Stanley advised selling the dollar / Canada

Canadian Dollar in the past few weeks, please do not get tired of bull, considering that after the break the lower limit of a large triangle formation, the U.S. / Canada passed the stage of decline is quite lively, which, according to currency strategists Citigroup, is likely to continue. The bank noted that a number of technical signals, in particular the closure of the day below support at C $ 1.1465, give reason to expect the continuation of the fall, at least, to C $ 1.0930, which is why they recommend to hold a short position in this pair of C $ 1.1392 with stop order at C $ 1.1590, noting that such a strategy is in line with their expectations of a strong overall weakening U.S. currency, which in the future may well come back to par in a pair with the Canadian dollar. Identical point of view, however, adhere to the strategic and Morgan Stanley, where she also recommended to take short positions on dollar / Canada with a view to further improve investor sentiment and a weakening dollar, noting that the minimum testing last year, near the C $ 1.00 looks quite realistic scenario development events.

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