The Canadian dollar stabilized after the recent turbulence and is looking for a new direction. What’s next for USD/CAD?

Here is their view, courtesy of eFXnews:

TD FX Strategy Research recommends fading USD/CAD rallies ahead of the BoC meeting in two weeks.

“The technical picture has also improved with the break of the 1.2472 (fib level) suggesting more room to push lower.

The next key levels to watch are 1.2393 and 1.2330 that would signal a push to the lower end of the recent range.

While the data has decelerated a bit over the past month, we note that wages and core inflation have started to accelerate and reinforces the notion that capacity is eroding,” TD adds.