USD/CAD: Cleared the way for an extension toward 1.3188 – RBC CM

Research Team at RBC Capital Markets, suggests that technically, their analyst notes WTI posted a trend reversal below USD 47.85 on Friday, with the bearish breakout setting the stage for deeper losses toward support at USD 44.70 (though WTI is bouncing overnight).

Key Quotes

“This development has been amplified by a bullish triangle breakout above 1.3039 in USD/CAD that has cleared the way for an extension toward 1.3188 (USD/CAD now testing support at 1.3000).

Domestic event risk is limited until Thursday’s April GDP report, where RBC is forecasting a 0.1%m/m gain in industry-level GDP after declines in February (-0.1%) and March( -0.2%).”