USD/CAD keeps the bullish stance near-term – Scotiabank

Eric Theoret, FX Strategist at Scotiabank, has reiterated the bullish outlook for the pair in the near term, while the door remains open for a test of 1.33-1.35.

Key Quotes

“USDCAD is testing fresh one week highs around 1.3050 and climbing back toward the upper end of its recent range”.

“Momentum signals remain muted, along with the soft DMI’s and trendless sub-25 ADX at 11”.

“However, short-term MA’s are bullishly aligned and the 9 day MA is rising above the 21 day MA”.

“Also note the approaching break of the 50 day MA above the 100 day MA. We look to near-term support at 1.3000 and anticipate gains above 1.3150 and the May high 1.3188 with expectations of a medium-term rise toward 1.33 and 1.35”