USD/CAD cautiously bearish short term – Scotiabank

FX Strategist at Scotiabank Eric Theoret noted the near term bearish outlook on the pair.

Key Quotes

“USDCAD has made a clear break below both the 200 day MA (1.3099) and the ascending trend channel from May”.

“Support is limited ahead of 1.30 and a break would see limited support ahead of the lower 1.28s”.

“We are cautious on the basis of extended technicals as we note the RSI’s move into oversold territory under 30 and the overstretched appearance of the DMI’s. Signals are mixed across longer time horizons”.