USD/CAD potential test of 1.2950 in the near term – Scotiabank

FX Strategists at Scotiabank now shifted their outlook on USD/CAD to bearish in the shorter horizon, allowing at the same time a probable visit to 1.2950.

Key Quotes

“Momentum indicators are fading from overbought levels and DMI’s are converging in a manner that hints to a shift in the balance of risk”.

“Near-term support has been observed in the 1.3020-1.3000 area however we look to further near-term weakness toward 1.2950”.

“The late 2017 high at 1.2920 is critical and a break would pave the way for further medium-term weakness toward the longer-term MA’s currently clustered in the mid/upper 1.26s”.