USD/CAD could see 1.2730/35 re-tested – Scotiabank

The pair’s outlook remains neutral/bearish on the short-term horizon and could slip back to the 1.2735/30 band, suggested FX Strategists at Scotiabank.

Key Quotes

“USDCAD is leaning quite hard on the low end of this week’s trading range around 1.2865/70, the neckline of a possible double top (1.30)”.

“A break lower should see funds dip to 1.2730/35 (measured move). The USD’s stall at 1.30 leaves USDCAD looking a bit heavy and a low close on the week, which fails to hold above the late 2017 highs at 1.2915, would definitely add to that impression and change the near to medium term dynamics for USDCAD somewhat. For today, expect 1.2865/70 to be pivotal”.