USD/CAD keeps the bullish outlook near term – Scotiabank

Pablo Piovano FXStreet

FX Strategist at Scotiabank Eric Theoret has noted the pair’s outlook remains on the bullish side in the near term.

Key Quotes

“We remain bearish CAD into year-end, looking to continued weakness on the back of relative central bank policy and the divergence between a tentatively hawkish Fed and an increasingly unreliable tone from a nominally neutral BoC”.

“Oil prices are likely to provide added pressure on CAD as we consider the month-long turn in WTI and its struggles above $50/bbl in an environment of broad-based USD strength”.

“Signals are bullish across both trend and momentum indicators as USDCAD retraces the January-May decline. The 50 day MA appears poised to break above the 200 day MA (see middle chart) and we highlight the absence of major resistance ahead of the 50% retracement at 1.3575”.

Author

Pablo Piovano

FXStreet

Born and bred in Argentina, Pablo has been carrying on with his passion for FX markets and trading since his first college years.

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