USD/CAD neutral/bullish near term – Scotiabank

FX Strategists at Scotiabank keep the pair’s outlook on the neutral/bullish side in the short-term horizon.

Key Quotes

“USDCAD is trying hard to extend gains above the 1.2570 technical break out zone but it is making very hard work of it”.

“Intraday patterns look flat but the slide back under 1.26 yesterday may weigh on the USD unless gains can be quickly re-established”.

“Trend momentum is flat on the 1– and 6-hour charts, which is not helping. Broadly, we still think a firm low is in at 1.2415 and that the USD needs to get back to the low 1.27 area to complete even the barest of corrections after its sustained slide since early May”.