USD/CAD bullish near term – Scotiabank

FX Strategist at Scotiabank Eric Theoret expects the pair to break above the key 1.30 handle in the near term.

Key Quotes

“USDCAD has sustained a break above 1.29 and is flirting with its 100 day MA (1.2931) with risk to the 50 day MA (1.2991)”.

“Bearish momentum signals are moderating, the RSI has climbed back to 46, and DMI’s hint to a shift in the balance of risk”.

“Last week’s rejection of the 61.8% Fibonacci retracement (1.2764) of the May-July rally has shifted the focus to upside risk. We look to a near-term break above 1.30”.