USD/CAD short-term outlook stays neutral – Scotiabank

FX Strategists at Scotiabank remain neutral on the pair, noting the strong support around the 1.2980 area.

Key Quotes

“On the basis of where USDCAD is and how the markets have traded in the past few weeks, it is hard not to conclude that USDCAD looks technically weak and vulnerable to more losses”.

“And yet there is really little sign that the market is leaning that hard on the USD here to make the decisive break under 1.30”.

“There are ample signs of support for the USD on dips on the short-term charts this week and the bar to some improvement in USDCAD’s short-term technical standing is quite low—above 1.3050 in the very near term would be a plus and above 1.31 on the day would be a positive. Key support is 1.2980”.