CAD: Downside risks remain firmly in place – RBC CM

Research Team at RBC Capital Markets, suggests that the downside risks remain firmly in place for USD/CAD technically as crude oil is propelled higher off of uptrend support at 48.55.

Key Quotes

“With support at 1.2911 exceeded with ease in this regard, the focus in USD/CAD now shifts down to the May 12 low at 1.2772. We note that a daily close below this level would effectively end the corrective rally that is in place and set the stage for a test of key longterm support at 1.2566. Resistance is located at 1.2911 and 1.3025.”