USD/CAD remains bearish near term – Scotiabank

FX Strategists at Scotiabank stay bearish on USD/CAD, adding that focus has now shifted to 1.2843, the 200-day SMA.

Key Quotes

“Momentum indicators are bearish and have confirmed the recent lows in spot”.

“The DMI’s are also bearishly aligned however trend strength is weak (ADX under 25). Near-term support is limited ahead of the 61.8% retracement of the April-June rally in the mid-1.28s and we highlight the importance of the 200 day MA at 1.2843”.

“Near-term resistance is now expected between 1.2950 and 1.2980”.