USD/CAD neutral/bearish near term – Scotiabank

Eric Theoret, FX Strategist at Scotiabank, believes the pair could slip back towards the 1.2420 area in the near term.

Key Quotes

“USDCAD appears to be showing signs of a turn following its rally from early September”.

“USDCAD was unable to extend gains above the 1.2520 resistance level and has returned to the upper 1.24 area corresponding to both the 50 day MA (1.2462) and the 23.6% retracement level of the May-September decline at 1.2471”.

“We look to near-term weakness toward 1.2420 and highlight the potential for an extension toward the September 27 (Poloz speech) open around 1.2350”.