USD/CAD neutral/bearish near term – Scotiabank

Eric Theoret, FX Strategist at Scotiabank, noted the pair’s perspective stays on the neutral/bearish side in the short-term.

Key Quotes

“Signals are moderately bearish across a number of trend and momentum indicators, however we await a break of the recent range roughly bound between the upper 1.33 and mid-1.35 area”.

“USDCAD appears to have rejected the 38.2% retracement level of the May 5-25 decline (1.3543) and is once again threatening the descending trend line drawn from the December-March highs”.

“USDCAD also appears set to attempt a break of the ascending trend line drawn from the February-April lows. The trend line delivered clear support in late May and a break would open up the risk of a push to the lower 1.33 area”.