After a new fail to establish above 0,97 and despite an attempt to hold above 0,9550 last week, the pair remains in intense bearish pressure.
The Canadian Dollar is actually strong against all its main counterparts. It is not surprising when we consider the economic outlook in Canada which is better than most advanced countries. Besides, the currency continues to take advantage of the Crude Oil tracking higher.
Next target on the USD/CAD is April low at 0,9450.
Although we think that the market might be in the process of building a material base on top of 2011 low, we must admit that is is too soon to talk about reversal even potential. To confirm a bullish scenario, we need to see at least a break above 0,98 over the coming sessions and it remains to be seen given the latest price actions.
For the time being, we will continue to look for buying opportunities on the CAD.