FX Strategists at Scotiabank noted the near term bullish outlook on the pair, which could advance to the 1.35/1.36 area.
Key Quotes
“USDCAD has made a decisive break through the upper bound of the descending trend channel from June. The measured move of the ‘bull flag’ formation implies a medium-term extension toward the mid1.30s and the 1.3500-1.3600 area”.
“Bullish momentum indicators are suggestive of an acceleration in the trend and the RSI is only at 60, leaving ample room for gains ahead of the overbought threshold at 70. Near-term support is now expected between the channel base (lower 1.31s) and 1.3080. Resistance is limited ahead of the 1.3200-1.3220 area”.
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