Bank of America Global Research discusses USD/CAD technical outlook and flags a room for the pair to rally to find some resistances in the near-term.
"On September 9th with FX Strategy we went long USD/CAD via a 1.34/1.38 call spread in line with our call for USD strength in September. At the time our daily technical chart showed the market defending the 1.30/1.2952 one year lows. A rally had broken above a trend line. Divergent oscillators (lower lows in price and high lowers in RSI and MACD) suggested a rally could follow too,' BofA notes.
"We do not think USD/CAD has found its peak yet, rather can see a path to the 200d SMA at 1.3525 and possibly the 38.2% retracement at 1.3633. We favor adding to longs on a dip to 1.3250 that tests the 50d SMA," BofA adds.