Bank of America Merrill Lynch FX Strategy Research notes that USD/CAD is inching closer to test the one year trend line support which remains at 1.3200.
“History shows this trend line can be overthrown during the trading day while a close below it has yet to occur to confirm a breakdown.
Momentum as shown by RSI is oversold and so a bounce from support is a possibility. One bounce already occurred last week and now support is being tested again,” BofAML notes.
BofAML points to support levels at 1.3200, 1.3000, 1.2850, and to resistance levels at: 1.3340, 1.3390 1.3475.
Source: Bank of America Merrill Lynch Rates and Currencies Research
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