The recommendations of leading banks such as RBC, Scotiabank, and Citigroup, regarding the USD/CAD pair, come down to one thing -the purchase of Canadian currency. Financial experts advise gaining long positions in this tool.
A number of analysts believe that in the near future the Bank of Canada may move to monetary policy easing. The market lays this opportunity in the price of the Canadian dollar. The currency strategists of the three largest banks, RBC, Scotiabank, and Citigroup, expect further depreciation of the currency of the Maple Leaf Country. According to the calculations of analysts at Scotiabank and RBC, the Canadian currency will remain at around 1.3100, while Citigroup specialists consider the range of 1.3015–1.3020.
According to a leading currency strategist at Scotiabank, Shaun Osbourne, one should consider selling the USD/CAD pair below 1.3535 in spot trading. Based on his calculations, a break below the 1.3250 bar should provide a short-term increase for the "Canadian" since such a movement will form a double top for a short time. In the future, traders can expect a fall to 1.3150-1.3155. He emphasized that narrowing money spreads is supporting the Canadian dollar.
Citigroup bank experts added an additional 20% to their short positions in the USD/CAD pair at 1.3249, aiming at the range of 1.015–1.3020 with stop-loss at 1.3375.
The leading head of currency strategy at RBC, Elsa Lignos, said that the USD/CAD pair lost its bullish momentum. The increased interest in risky assets supported the pair and allowed breaking the support of the uptrend to 1.3275. Further reversal of this trend has shifted focus from 1.3185 to 1.3145. The expert emphasized that the decline was significant.
Canadian currency is currently trading at $1.3301 for $1. Most experts recommend buying the currency of the maple leaf country currency.
