USD/CAD neutral near term – Scotiabank

FX Strategist at Scotiabank Eric Theoret noted the neutral stance for the pair in the short-term.

Key Quotes

“Measures of CAD sentiment hint to a moderation in the premium for protection against CAD weakness as risk reversals continue to fade the rally from late June”.

“Momentum signals are close to neutral, the ADX is trendless, and DMI’s are muted. USDCAD has returned to its 50 day MA and appears to be attempting a retracement of its late June rally. We look to near-term support at 1.2850 followed by 1.28. Near-term resistance is expected at 1.2920.