Don’t miss this month’s edition of the George Davis Report, where George discusses how technical analysis is used in RBC’s forecasting framework.
What you need to know:
We use technical analysis to supplement fundamental analysis in our forecasting framework.
Correlation models can be used to identify evolving macro themes and key drivers of USD/CAD.
Relative Rotation Graphs help to identify relative strength trends between USD/CAD and other currency pairs.
A more aggressive BoC and firmer commodity prices have helped CAD outperformance on the crosses, with this trend expected to continue through year-end.
Price patterns and key support/resistance levels shape core views and expectations for our monthly trading ranges, with 1.2379 serving as a key “line in the sand” for the long-term uptrend in USD/CAD.
For the trading range:
USD/CAD
Buyers
1.2600/1.2700
Sellers
1.3000/1.3100