USD/CAD still bullish near term – Scotiabank

Eric Theoret, FX Strategist at Scotiabank, has reiterated the bullish stance for the pair while he added that strong support is seen at 1.3020.

Key Quotes

“Sentiment is adding to CAD weakness as we note the continued rise in measures of implied volatility across a range of time horizons. Risk reversals are shifting accordingly and pricing a greater premium for protection against CAD weakness. CAD’s near-term balance of risk lies to the downside (USDCAD upside)”.

“Both the MACD and RSI are bullish, DMI’s are providing confirmation, and the 9 day MA (1.2977) appears poised to cross above the 21 day MA (1.2988). USDCAD has sustained a break above 1.3050, and we note the absence of resistance ahead of 1.3250. Near-term support is expected at 1.3020”.