Morgan Stanley advises patience in grabbing a USDCAD dip
The latest note from MS says;
"There is room for a bit more retracement in USDCAD but the longer-term uptrend (the C-wave) is not yet complete."
USDCAD 5yr
They add that the break of the 61.8 fib of the 1.2832/1.4690 and the current momentum will carry the pair down further.
USDCAD daily chart
They add;
"Technically, the current momentum suggests waiting until 1.30 to buy USDCAD again,"
I've no doubt the 1.30 level will be a big number to watch and one longs are likely to protect and re-add to positions. My preferred area to look at longs is a bit further south around the low 1.28's.
In the meantime, we're still trying to make a choice about the 1.3450/60 area. The pair has struggled to get back and hold above and each attempt has become weaker.
USDCAD H1 chart
That keeps the bearish pressure on but that has run out of steam at 1.3370. While there's not a lot going on, 1.3400 is providing the support role.
That's a pretty tight range to mess around in so a break either way is likely to be sharp. The NFP could be the tipping point.
