USD/CAD further gains likely – Scotiabank

FX Strategist at Scotiabank Eric Theoret believes the pair could extend its upside momentum in the short-term.

Key Quotes

“CAD is quiet as it completes a fourth consecutive session of consolidation within a remarkably tight range, its movement limited as a result of the recent stabilization in yield spreads. Relative central bank policy remains dominant as we note CAD’s resilience in the face of renewed weakness in oil prices”.

“Momentum signals are bullish, DMI’s are providing confirmation, short-term MA’s are aligned in a bullish manner, and the 50 day MA has broken above the 200 day MA. Recent USDCAD gains have stalled above 1.3420 and support has been observed between 1.3350 and 1.3380. We anticipate a bullish resolution to the recent four session consolidation”.