Tuesday, June 9, 2009

U.S. / Canada will continue to decline

Analyst BMO Capital Markets is a very interesting symmetry of movements of a pair of dollar / Canada since the peak at 1.3066 in March. The bank believes that this symmetry reflects the possibility of a significant reduction in pairs. Assuming that achieved the level of 1.1290 on Monday is a maximum of rollback, as well as to take into account the specificity of reduction pairs, consisting of four phases, the next stage should be completed in the area between 1.0556 (-734 points) and 1.0260 (-1030 points) around the period from 23 to 29 June. Refutation Bear forecast, currency strategists believe BMO Capital Markets, will become only the higher peaks of the two-month closure of the channel at 1.1241. TD Securities analysts also point efficiency reduction of a pair of U.S. / Canada. In the case of closing the achievement of low levels of 1.12 would be very problematic, and the likelihood of further correction will decrease. A key short-term resistance to TD Securities strategists put 1.1280/85 area, the support takes place at the level of 1.0931. Now a pair of dollar / Canada is traded at around 1.1030.

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