FX Strategists at Scotiabank noted support should emerge in the 1.3250/20 band in the short term horizon.
Key Quotes
“Momentum indicators are showing signs of a turn and softening from extended, overbought levels”.
“The RSI is now back below 70 and the bullishly aligned DMI’s are no longer widening”.
“The 9 day MA (1.3289) has been broken and USDCAD is threatening the lower end of its two week range in the mid/upper-1.32s”.
“Recent spikes in USDCAD have failed to meaningfully extend above key technical levels including the midpoint of the range from 2016 (1.3376) and the last major retracement (76.4%) of the May-Sept 2017 decline at 1.3384. Near-term support is expected in the area between 1.3250 and 1.3220, with additional support at 1.3150″.
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