USD/CAD turned to neutral near term – Scotiabank

Eric Theoret, FX Strategist at Scotiabank, noted the neutral outlook for the pair in the short-term horizon.

Key Quotes

“Momentum indicators are conflicted close to neutral, the ADX is softening toward ‘trendless’ territory below 25, and USDCAD continues to trade in a tight range around its short term (9 & 21 day) MA’s”.

“This week’s sequence of lower USDCAD highs suggests a moderation in upside risk and support has held steady around 1.3050”.

“The two week triangular consolidation pattern is suggestive of a continuation with a resolution to the downside”.

“We look to 1.3020 for confirmation. The pattern would be violated on a sustained rally above 1.3180”.