Strategists at Scotiabank see the pair’s outlook as tilted to the bearish side in the near term.
Key Quotes
“We caught the early bid tone in USDCAD yesterday but the rapid turn in the market from the 1.3845/50 intraday highs was rather surprising”.
“The weight of net selling left a bearish print on the daily chart (bearish outside range) and places the near-term technical risks clearly on the downside”.
“Trend momentum signals are not necessarily supportive of a significant directional move at this point and we still rather think range trading will prevail”.
“It will be hard to ignore a clear and sustained break under the 1.3650 area, however, as it would suggest another leg lower (towards 1.33) was poised to unfold”.
