Top pick for the day - Canadian Dollar

Still heading higher from here

Canadian Dollar (CAD) looks poised for higher prices in the longer term but in the near term, some form of consolidation could be on the cards.

The CAD has a close and direct relationship with the weakness in crude oil.

The strong US Dollar (USD) is likely to continue for a while longer in the near term before it takes a break. We expect CAD to stop within the current levels of 1.3168-1.3185, where both are Fibonacci targets.

Thereafter, the CAD could undergo a correction, likely a sideways correction in a form of a triangle or flat. We expect the previous highs of 1.2680-1.2810 range to hold if any form of correction takes place.

Longer term, prices could extend towards 1.3500. (Read Report)

Source : CIMB Research

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