USD/CAD bearish near term, could test 1.2925 – Scotiabank

The pair’s stance remains bearish for the time being, leaving the door open for a test of 1.2925 in the near term, according to FX Strategists at UOB Group.

Key Quotes

“Short-term price action remains USD bearish. Funds broke below—and held the retest of—the double top breakdown trigger at 1.3050 (the intervening low between repeated tests of 1.3075) yesterday”.

“The formation targets a drop in the USD to 1.2925. We note firm support in the upper 1.29s (100-day MA and the early Aug low especially at 1.2963) which may slow USD losses. However, a break below the upper 1.29s would support—and enhance—the bearish outlook for the USD. Resistance is 1.3050/60”.