USD/CAD: headed to 1.2050 and easily? - Scotiabank

Analysts at Scotiabank explained that USD/CAD’s trend decline is picking up speed again. 

Key Quotes:

"The modest stabilization in the USD overnight has simply allowed sellers to scale into slightly better short USD positions; the extension below 1.24 to new cycle lows underscores the significant accumulation of bearish technical pressure on the market now."

"We reiterate that trend momentum indicators are aligning in a strongly bearish fashion, with intraday, daily, weekly and monthly oscillators all supportive of additional declines in the USD."

"The situation implies only limited, in terms of scale and duration, scope for counter trend USD corrections from here."

"Long-term support at 1.2050 (50% retracement of the 0.94/1.17 rally between 2011/2017) and 1.1915 (low from May 2015) look quite reachable in relatively quick order. Longer-term chart signals are deteriorating. Minor USD gains remain a sell."