USD/CAD short-term technicals mixed – Scotiabank

FXStreet (Barcelona) - Camilla Sutton CFA, CMT, Chief FX Strategist at Scotiabank, gives the technical outlook for USD/CAD, noting that the near-term support for the pair lies around 1.2437.

Key Quotes

“CAD is flat, trading within its well defined 1.2314 to 1.2799 range.”

“Correlations have shifted, with those that measure interest rates (US—Canadian 2-year spread and the one year OIS) having become increasingly important. The shift likely also reflects the new range bound CAD behavior, but it is worth watching closely. At the same time the intraday high to low range continues to be wide.”

“USDCAD short‐term technicals: mixed—USDCAD is in the midst of a temporary range trade between 1.2314 and 1.2799 and technical studies are providing mixed clues. The MACD warns of downside risk, while other studies have been slow to turn.”

“We see near-term support at 1.2437, the 21-day MA, which USDCAD hasn’t broken below since November; resistance lies recent congestion at 1.2600.”

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