USD/CAD bearish in the near term – Scotiabank

Eric Theoret, FX Strategist at Scotiabank, argued that a visit to 1.2420 still remains a chance.

Key Quotes

“USDCAD is under pressure, extending its decline for a third consecutive session following its break of the 50 day MA (1.2667)”.

“Some of the September-October rally’s key retracement levels include the 38.2% at 1.2590 and the 50% at 1.2490”.

“Momentum is bearish, DMI’s are confirming, and the 9 day MA appears poised to break below the 21 day MA”.

“Near-term support appears limited ahead of 1.2600. Near-term resistance is expected above 1.2720. A reminder that the October-November double top implies an extension toward the 1.2420s”.