USD/CAD neutral-bullish short-term – Scotiabank

FX Strategists at Scotiabank gave their views on the pair, expecting at the same time a potential test of the 1.2600 handle.

Key Quotes

“Bearish momentum signals have faded to neutral and DMI’s are confirming a shift in the balance of risk”.

“Both the 9 and 21 day MA’s have been broken, the latter for the first time since late December”.

“We look to near-term gains toward 1.2480 and 1.2550 and highlight the potential for a rally toward 1.2600 around levels roughly corresponding to the 50 and 100 day MA’s as well as the 38.2% Fibo retracement of the September-December rally. Nearterm support is expected at 1.2380”.