Sell rebounds in USD/CAD – Scotiabank

In view of FX Strategists at UOB Group, occasional bullish attempts in spot should be seen as selling opportunities.

Key Quotes

“The technical trend in USDCAD remains very negative over the short run and looks increasingly bearish on the longer term charts”.

“Spot has broken below the Apr low at 1.3224 and now only faces 1.3170 Fib retracement support ahead of a push back to the Feb low (1.2978)”.

“We see minor resistance now at 1.3235/45 and stronger intraday resistance at 1.3285/95. Short-term, bear trend momentum is strengthening which usually means minor counter-trend rebounds are a sell”.