Analysts at Scotiabank explained that USD/CAD price signals retain a mixed feel.
Key Quotes:
“On the one hand, the sharp gains from last week’s low have extended nicely, supporting the idea of a firm base around 1.2905. On the other, the mid-week price action has become quite bogged down in a well-defined range between 1.3205/10 (nosing above at writing) and 1.3165. This could represent a pause in the rally ahead of another leg higher but the short-term picture looks a little over-extended now for price action to represent a bull flag-type structure in our opinion.”
“Trend signals are mixed across a range of timeframes now, relieving the USD of some of the upward momentum we saw late last week and earlier this week. Odds still favour more USD gains in the short run, we feel, but progress might be choppy.”
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