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USDCAD Pulls Back From Overbought Conditions

CANADA
  • USDCAD at ~1.3750 holds the modest further decline seen overnight, extending yesterday’s pullback away from overbought conditions.
  • The decline is deemed corrective from technical viewpoint. Support is seen at 1.3682 (Apr 12 low) whilst is resistance at 1.3846 (Apr 16 high) before 1.3855 (Nov 10, 2023 high).
  • CAD trades mostly in line with other high beta peers.
  • No particular bias from today’s option expiry, with a solid $992mn at 1.3750.
  • Ahead: US jobless claims should set the tone at 0830ET, although there is very much secondary Canadian data at the same time with monthly credit and employment insurance for Feb.

14-day RSI falls back below 70Source: Bloomberg

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