CAD: Close above key double top at 1.3219 required to trigger a bullish breakout – RBC CM

Elsa Lignos, Senior Currency Strategist at RBC Capital Markets, suggests that broad-based USD weakness has pushed USD/CAD back toward 1.3100 as oil prices remain relatively firm.

Key Quotes

“No data releases are scheduled in Canada today, leaving USD/CAD taking its cue from broader USD moves in quiet summer markets. Support is located at 1.3045 and 1.3000, with a close above the key double top at 1.3219 required to trigger a bullish breakout from the current price consolidation.

On the crosses, a break below 1.6995 would indicate that GBP/CAD has lost upward momentum via the formation of a short-term topping pattern, shifting the focus down to 1.6830 and the post-UK referendum low at 1 6695.”