USD/CAD neutral bearish near-term – Scotiabank

FX Strategist at Scotiabank Eric Theoret does not rule out a test of the 1.2220 area in the near term.

Key Quotes

“USDCAD is soft testing fresh August lows under 1.2450 with no support ahead of the late July low just above 1.2400”.

“Momentum signals are bearish and DMI’s are confirming along with the short -term MA’s. We continue to highlight the importance of near-term resistance between 1.2500 and 1.2520. A break of the July lows should see further weakness toward 1.2220”.