Markets

Morgan Stanley knows exactly where to buy USDCAD

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."

They add;

USDCAD daily chart

" 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.

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.

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.

eFX News have the Morgan Stanley note

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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