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RATINGS

Italy Upgraded At Fitch, Affirmations Elsewhere

ASIA

Coming up in the Asia-Pac session on Monday:

MNI

Coming up in the Asia-Pac session on Monday:

USDCAD TECHS

Heading North

GLOBAL POLITICAL RISK

Modi, AMLO Top Major Economy Leader Poll, Macron Last

FOREX
FOREX: Wednesday saw RBC technicals go long AUD/CAD at C$0.9372. They would look
to add at C$0.9200, target C$0.9600, stop loss C$0.9175. RBC note that "AUD/CAD
posted a bullish LT trend reversal above C$0.9026 on Apr 24. Prices have been
consolidating above support at C$0.9247 following a successful re-test of the
breakout trendline in early May. This has allowed the RSI study to work off most
overbought readings since Nov '18 - with the return to more neutral levels
removing an impediment to further gains. Furthermore, RSI above 40 since the
breakout point to underlying bullish sentiment, as does buying strength on the
Bloomberg Fear/Greed index. More importantly, the consolidation has led to the
formation of a bullish flag pattern against 61.8% retracement of the '18-'20
decline at C$0.9413. A daily close above C$0.9413 would complete the flag
pattern (continuation), clearing the way for an extension to the Apr 30 '19 high
at C$0.9510, followed by the Apr 17 '19 high at C$0.9615. Additional resistance
is located at C$0.9730 (76.5% retracement). The bullish backdrop suggests that
pullbacks to support at C$0.9247 will attract buying interest. with a break
below the trendline at C$0.9193 required to damage the uptrend."
MNI London Bureau | +44 0203-865-3809 | anthony.barton@marketnews.com
MNI London Bureau | +44 0203-865-3809 | anthony.barton@marketnews.com