USD/CAD remains on the defensive – RBC CM

Adam Cole, Research Analyst at RBC Capital Markets, notes that the USD/CAD remains on the defensive in response to yesterday’s ~4% rally in crude oil prices.

Key Quotes

“Therefore, although USD/CAD still remains within a broad multimonth trading range defined by support at 1.2771 and key double top resistance at 1.3219, the resulting bearish breakout below 1.3006 sets the stage for a move toward secondary support at 1.2862 as the bottom end of the range is probed.

Today’s CA July Teranet House Price Index data will garner some market attention (no consensus, prior 10.0% y/y) as concerns about outsized price gains in the Vancouver and Toronto real estate markets linger.”