The close below the 94.08 low of August 2016 has opened up further losses towards the 93.02 low of June 2016.
Background studies also continue to weaken.
A close above 96.00 is needed to stabilise price action and prompt an Upgrade to Neutral.
Our most recent USD update, part of our Weekly FX Publication, highlighting further downside risks into the coming weeks. In tandem with broad based USD weakness, we remain negative USD/CAD.
The dominant bear trend from May is accelerating, and we expect further losses into the coming weeks. In fact, our most recent Monthly FX Publication anticipates a more significant multi-month bear trend if USD/CAD closes below the 1.2450/60 year low of May 2016.
(As the CAD continues to strengthen, commodities traders will look for limited pullbacks in Oil prices.)
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