USDCAD: Poised for a re-test of key resistance at 1.3219 – RBC CM

Sue Trinh, Senior Currency Strategist at RBC Capital Markets, suggests that the USD/CAD is poised for a re-test of key resistance at 1.3219 as the risk-off tone that has gripped markets buoys the greenback and pushes stock, commodity, and bond prices lower.

Key Quotes

“A daily close above 1.3219 is required in order to resolve a multi-month price consolidation to the topside, with the resulting increase in bullish sentiment shifting the focus up to the 200-dma at 1.3270, followed by the 1.3450 area.

Senior BoC Deputy Governor Wilkins will deliver a speech titled “(S)low for Long and Financial Stability” around noon in London, UK today. The BoC has continuously stressed that macro prudential measures are the best tool to address financial stability risks as opposed to the levers of monetary policy. This thematic message is not expected to change if it is addressed in her speech.”