The USD continues to squeeze higher but USD Index gains must be seen as
corrective, temporary, and ultimately limited to 80.75/80.80, before the larger
bear trend resumes for 78.72, says Bank of America Merrill Lynch.
"For those looking to buy USD, DON’T BUY USD/CAD. The pair remains in a large, multi-month contracting range between 1.0503 and1.0255. It is now in the process of turning down toward its range lows. A close below1.0421 confirms a near-term top and turn lower in range," BofA advises.
Meanwhile, BofA remains bullish on Gold.
"The impulsive gains from the 1251 low of Oct-15 and break of the 2m downtrend (confirmed on the break of 1330) say the medium-term trend has turned bullish. We look for an ultimate break of the 1433 highs of Aug-28, with POTENTIAL for a push to 1500/1533 long-term resistance," BofA clarifies.
"We wish to buy this dip at 1310. THIS VIEW IS WRONG ON A BREAK BELOW 1251," BofA adds
In line with this view, BofA runs an active limit order to buy spot Gold at 1310, risking 1250, targeting 1450.
"For those looking to buy USD, DON’T BUY USD/CAD. The pair remains in a large, multi-month contracting range between 1.0503 and1.0255. It is now in the process of turning down toward its range lows. A close below1.0421 confirms a near-term top and turn lower in range," BofA advises.
Meanwhile, BofA remains bullish on Gold.
"The impulsive gains from the 1251 low of Oct-15 and break of the 2m downtrend (confirmed on the break of 1330) say the medium-term trend has turned bullish. We look for an ultimate break of the 1433 highs of Aug-28, with POTENTIAL for a push to 1500/1533 long-term resistance," BofA clarifies.
"We wish to buy this dip at 1310. THIS VIEW IS WRONG ON A BREAK BELOW 1251," BofA adds
In line with this view, BofA runs an active limit order to buy spot Gold at 1310, risking 1250, targeting 1450.
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