USD/CAD outlook remains bearish short term – Scotiabank

In view of FX Strategists at Scotiabank, the pair’s stance remains bearish in the near term.

Key Quotes

“USDCAD consolidated overnight but USD gains have only just about recovered the losses seen following the break under support in the low 1.26s yesterday”.

“At least, price action suggests a pause ahead of another push lower; price action is trading below major and intermediate moving averages (200– and 40-day) and we continue to target 1.2500/05 as the downside objective following the late Mar break under a Head & Shoulders trigger”.

“We look for resistance intraday at 1.2625/30 and for losses to pick up speed again under 1.2580”.