Quarterly Outlook
Fixed Income Outlook: Bonds Hit Reset. A New Equilibrium Emerges
Althea Spinozzi
Head of Fixed Income Strategy
Technical Analyst, Saxo Bank
USDCAD seems to be attracting bids just above the 0.618 retracement and support at 1.3618.
Since the RSI is still showing positive sentiment with no divergence, a break above 1.3731 combined with an RSI close back above the 60 threshold will confirm that USDCAD has resumed its uptrend, with upside potential to 1.3928, possibly higher.
A daily close below 1.3618 will reverse this possible bullish scenario and likely push USDCAD down to the 0.786 retracement at 1.3556.