USD/CAD remains a ‘sell on rallies’ – Scotiabank

FX Strategists at Scotiabank have recommended fading occasional bullish attempts in spot.

Key Quotes

“USDCAD cracked weekly trend support through the close of business Friday, which suggests moderating upside pressure on spot at the very least. Short-term patterns reveal steady demand for USDs on dips to the low/mid 1.28s, however. USDCAD may nudge a little higher in the near-term but we think the tide may be turning for the USD after it stalled at key retracement resistance (61.8% of the 1.38/1.20 fall at 1.3133 last week)”.

“From here, we expect USD resistance in the mid 1.29s and for USD weakness to extend more significantly below 1.28. Technically, signals support the idea of fading USD rallies”.