USD/CAD: headed to 1.2461 on a clear break of 1.2580? - Scotiabank

Analysts at Scotiabank explained that USD/CAD short-term technicals are bearish, with caution.

Key Quotes:

"We remain cautious on the basis of oversold momentum indicators at levels that are typically suggestive of exhaustion."

"However we also acknowledge the remarkable strength in the bearish USD/CAD trend with the ADX at levels previously only seen four times over the past 10 years.

USD/CAD support has been observed around 1.2580 and there are no other major support levels ahead of the 2016 low at 1.2461."

"Resistance levels continue to fall, now anticipated at 1.2650 (from 1.2700 and the 1.2720-1.2750 area previously)."