USD/CAD should find resistance around 1.2850 – Scotiabank

Eric Theoret, FX Strategist at Scotiabank, noted the outlook on the pair remains neutral/bullish with strong resistance in the mid-1.2800s.

Key Quotes

“Trend and momentum indicators are overwhelmingly bullish however Friday’s shooting star candle is suggestive of exhaustion and a potential reversal following the rally from early September”.

“We look to near-term support between 1.2800 and 1.2780, followed by 1.2720. Resistance is expected above 1.2850 and we highlight the importance of the 50% retracement of the May-September decline at 1.2928”.