USD/CAD: bullish bias with key technical levels to monitor - Rabobank

Analysts at Rabobank explained that since they last sent out this note the confirmed close above 1.34 that we stated would put 1.36 into the spotlight has come to fruition and indeed, we saw the pair test 1.36 with a 1.3599 print. 

Key Quotes:

"That said, USD/CAD failed here and returned back to the 1.34 handle with its tails between its legs. So far in 2017 the pair had stayed within a tight 75pip range but today the pair dropped down to support at the 1.33 handle."

"This can be partly attributed to today’s modest rise in oil prices and profit taking. Our bias remains for a higher USD/CAD but we will need to see a confirmed close (a close followed by a subsequent higher close) above the 50% Fibonacci retracement of the January to May sell-off if we are to see the pair enter a new trading range of 1.36-1.3840. As mentioned, we do still see the path of least resistance as higher for the pair."