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CAD: Close above key double top at 1.3219 required to trigger a bullish breakout – RBC CM

Elsa Lignos, Senior Currency Strategist at RBC Capital Markets, suggests that broad-based USD weakness has pushed USD/CAD back toward 1.3100 as oil prices remain relatively firm.

Key Quotes

“No data releases are scheduled in Canada today, leaving USD/CAD taking its cue from broader USD moves in quiet summer markets. Support is located at 1.3045 and 1.3000, with a close above the key double top at 1.3219 required to trigger a bullish breakout from the current price consolidation.

On the crosses, a break below 1.6995 would indicate that GBP/CAD has lost upward momentum via the formation of a short-term topping pattern, shifting the focus down to 1.6830 and the post-UK referendum low at 1 6695.”

AUD/USD in 4-month highs near 0.7750

The Aussie dollar is prolonging its upside today, sending AUD/USD to print fresh multi-month peaks around 0.7750. AUD/USD gains bolstered by USD soft
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GBP/JPY seems vulnerable to break below 132.00 handle

Yen continues to surge, with the GBP/JPY cross erasing its tepid recovery gains to 132.83 and is now hovering near 4-week low level around 132.00 mark
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