USD/CAD bullish, eyes 1.3500 near term – Scotiabank

FX Strategist at Scotiabank Eric Theoret noted the bullish stance on the pair and believes it could test the 1.3500 area in the short term.

Key Quotes

“CAD is up a modest 0.2% from Tuesday’s close, trading at the lower end of its multi-month range with an ongoing focus on relative central bank policy as CAD trades in tandem with the 2Y U.S.-Canada yield spread while completely ignoring the rally in oil (WTI)”.

“Momentum signals are modestly bullish and short-term MA’s are aligned in a bullish manner. USDCAD is trading comfortably above its 200 day MA (1.3200) at the upper end of its multi-month range just below the last week’s high just above 1.33, the level roughly coinciding with the 38.2% Fibonacci retracement of the January-May USDCAD decline”.

“We look to further gains toward 1.35”.