USD/CAD neutral/bearish near term – Scotiabank

FX Strategists at UOB Group gave their view on the pair, recommending at the same time fading occasional rallies.

Key Quotes

“We are bullish on the CAD and feel that USDCAD rebounds to the 1.33/1.34 area represent USD selling opportunities”.

“USDCAD continues to respect the established trading range in place since the middle of the month. We view the upward sloping channel as a bear flag consolidation which heralds the risk of another, potentially sharp drop in the USD in the next 1-2 weeks. We see resistance at 1.3305 and 1.3365 while support is 1.3217. Look to fade USD rallies”.