USD/CAD stays neutral/bearish near term – Scotiabank

In view of FX Strategists at Scotiabank, USD/CAD's stance in the short term is still tilted to the neutral/bearish side.

Key Quotes

“Spot traded a little above the ceiling of the bear flag consolidation we noted yesterday but the gains were only briefly held and the USD’s slide back to its opening level through the close of trade sustains the impression of market that is consolidating recent losses, ahead of another push lower, rather than attempting a reversal”.

“We remain bearish overall, continue to view the 1.22 area as offering resistance and feel that USD weakness below the current consolidation base (1.2110) will trigger renewed downside pressure on the USD. We still prefer to fade USD gains”.