USD/CAD: Bearish trend to 1.3016 could resume – CitiBank

Analysts at Citibank, warn that any uncertainty from US-China trade talk may increase the market volatility and restrain the performance of the Canadian dollar. They see the USD/CAD pair trading at 1.31 over the next three months. 

Key Quotes:

“Although the October BoC was more dovish than expected with the Bank’s 2020/21 GDP forecasts lowered and an emphasis placed on the downside risks of trade wars, the domestic Canadian economy remains resilient and the BoC on hold which support CAD.”

“USD/CAD is within the short-term up channel, but RSI reached overbought territory, implying that upside may be limited at 1.3340. The pair may resume downtrend to 1.3016 upon consolidation, with interim support at 1.3042.”