USD/CAD keeps looking to a retest of 1.2925 – Scotiabank

FX Strategists at Scotiabank remain neutral/bearish on the pair and continue to see the likelihood of a test of 1.2925 in the short-term horizon.

Key Quotes

“Momentum indicators are neutral and the DMI’s are muted following USDCAD’s return to the midpoint of its August range”.

“Overnight gains appear to have faltered around 1.3100 and USDCAD is threatening a push back toward the technically-relevant 1.3050 level. We look to an extension toward Thursday’s lows under 1.3000 and continue to highlight the importance of last week’s double top implying a measured move target of 1.2925”.