CAD On Course For A Relief Rally

The Canadian dollar looks set to rally after a bout of major depreciation against the US dollar since late June, which saw the unit hit our CAD1.30/USD target in recent trading. Momentum indicators, such as the relative strength index (RSI) suggest the Canadian dollar is oversold and could be on course to re-test technical resistance around the CAD1.22-1.25/USD area. Oversold Exchange Rate, CAD/USD & RSI (Bottom) Source: Bloomberg, BMI Weak economic data, which show that the Canadian...

Please subscribe below to view this content.