FX Strategist at Scotiabank Eric Theoret has reiterated the bearish outlook for the pair in the near term.
Key Quotes
“Daily signals are broadly bearish, and the RSI has provided confirmation with Friday’s decline to a fresh oversold (sub-30) low under 29”.
“We are cautious on the basis of USDCAD’s historical response to technically oversold levels, and note the potential for a swift reversal”.
“In terms of downside USDCAD risk we look to the 200 day MA at 1.3298 followed by 1.3250 and 1.3180. Resistance is expected at 1.3420 and 1.3500”.
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