CAD: 1.3219 level may continue to limit the topside – RBC CM

Elsa Lignos, Senior Currency Strategist at RBC Capital Markets, suggests that their technical analyst notes that the rally in USD/CAD has stalled near key double top resistance at 1.3219 as crude oil remains firm in the aftermath of last Wednesday’s bullish key reversal day.

Key Quotes

“The 1.3219 level may continue to limit the topside over the short term as oil is poised to extend gains toward 44.65. Support is located at 1.3064.

July housing starts are due today. RBC is forecasting a 13.9% drop to 188.0K in July (cons. 190.0K) as a large portion of the 16.9% jump in June that took starts to a 9m high is retraced.”