USD/CAD outlook points to further upside – Scotiabank

FX Strategist at Scotiabank Eric Theoret sees the outlook for the pair as bullish in the short run.

Key Quotes

“CAD appears to be trading in tandem with oil prices in a manner that underscores the dominance of broader market sentiment as we note its complete disconnect to the 2Y U.S.-Canada yield spread”.

“USDCAD risk lies to the upside as we consider the decisive shift in momentum (MACD, RSI) and confirmation from trend signals given the turn in DMI’s and the crossing of the 9 day MA above the 21 day MA. Near-term resistance is expected at 1.31 and we look to a rise toward 1.33 and 1.35. Near-term support is expected at 1.30 and 1.2950”.