USD/CAD (very) bearish near term – Scotiabank

FX Strategists at Scotiabank remain bearish on USD/CAD in the short term.

Key Quotes

“Very bearish. Yesterday’s sell-off has extended quickly to the upper 1.32 area (38.2% of the 1.24/1.38 rally) and is trading below all major MA supports”.

“Support intraday is 1.3224 (Apr low) but a push to the 1.30 area is a realistic possibility in the next couple of weeks”.

“Trend signals are aligned bearishly on the shorter-term oscillators, suggesting counter-trend corrections are liable to remain shallow. Look to fade minor rallies above 1.33 in the next few days. Key resistance near-term is 1.3385”.