The TD Bank research team said Friday (May 22) that if the USD / CAD breaks through 1.4080, the currency pair will remain structurally bullish in the medium term.

The bank said: “The US dollar / Canadian dollar has continued to fluctuate near key support levels recently. So far, the currency pair has remained in the 1.3850 to 1.3870 area. This is the third test of a wider downward triangle from the March high. Region. Therefore, a break below this support level will bear the currency pair, especially if it coincides with the replacement moving average (DMA), the currency pair will break 1.3766. “

Chart: USD / CAD daily chart (possible trend 1), source: FX168

The bank added: “At the same time, breaking the 1.4050 to 1.4080 resistance level will open up the space. We continue to pay attention to the latter. We believe that there is no clear catalyst for the down direction and we will see more USD / CAD. At the same time, we Now I am more inclined to believe that the good news of the Canadian dollar has been digested by the exchange rate, and the current position is biased towards a short position, but we think this is natural from a strategic point of view. At the same time, according to our prediction, the US dollar will look more comprehensive ‘S retracement. “

Chart: USD / CAD daily chart (possible trend 2), source: FX168

At 07:00 Beijing time, USD / CAD is reported at 1.39984.