USD/CAD neutral/bullish near term – Scotiabank

Eric Theoret, FX Strategist at Scotiabank, expects USDCAD to reach the mid-1.3400s in the near term.

Key Quotes

“Momentum signals are moderately bullish, DMI’s are muted, and short-term MA’s are bullishly aligned”.

“The broader trend from mid-March has seen a sequence of higher lows and higher highs, forming an ascending trend channel hinting to support at 1.3320 and resistance around 1.3480”.

“Recent support has held in the 1.3380-1.3400 area, with the exception of a short-lived drop to 1.3350. We look to gains through the recent highs around 1.3450”.