CAD: Should resolve a multi-month consolidation pattern to the topside – RBC CM

Elsa Lignos, Senior Currency Strategist at RBC Capital Markets, suggests that the USD/CAD bucked the rally in crude, trading above 1.3250, though it has since retraced to 1.3175/80.

Key Quotes

“There are no data releases scheduled in Canada today, with the main event risk appearing on Friday with the release of July GDP (RBC 0.5%m/m). From a technical perspective, USD/CAD just about managed to squeeze a daily close yesterday above key triple top resistance at 1.3219, which our technical analysts argue should resolve a multimonth consolidation pattern to the topside. The 200-dma at 1.3242 is up next; above there, focus would shift up to the 1.3402-46 area.”