USD/CAD still expects a test of 1.33/1,35 – Scotiabank

The short-term bias in the pair remains tilted to the bullish side, according to Eric Theoret, FX Strategist at Scotiabank.

Key Quotes

“In terms of CAD drivers, we highlight the risk surrounding the renewed widening in the 2Y U.S.-Canada yield spread”.

“Signals are bullish across both trend and momentum indicators however their magnitude is remarkably muted and the ADX remains trendless (under 25) at 16”.

“Near-term support is expected at 1.2950 and 1.2920, with impressive resistance noted above 1.31”.

“The 100 day MA (1.3069) has capped USDCAD gains on a closing basis, however we continue to anticipate a break with expectations of a climb toward 1.33 and 1.35”.