USD/CAD neutral/bullish short term – Scotiabank

Eric Theoret, FX Strategist at Scotiabank, remains neutral/bullish on the pair in the short term horizon.

Key Quotes

“USDCAD appears to be struggling above recent resistance around 1.2520. Daily momentum indicators are only modestly bullish and the ADX remains trendless”.

“We continue to highlight the importance of recent congestion in the upper 1.24 area around the 50 day MA (1.2462) and the 23.6% retracement of the May-September decline at 1.2471. Shorter-term (hourly) charts are showing negative divergence and suggestive of exhaustion following the recent rally from early September”.