USD/CAD cautiously bearish – Scotiabank

Eric Theoret, FX Strategist at Scotiabank, remains bearish on the pair, albeit with some caution in the near term.

Key Quotes

“The relentless decline in USDCAD has shown no signs of exhaustion despite momentum indicators reaching oversold levels at the lower end of their multi-decade range”.

“USDCAD is trading within the May 3, 2016 candle with no major support ahead of the low at 1.2461 (middle chart). Resistance has been observed at 1.2700. We anticipate further resistance in the 1.2720-1.2750 area”.