USD/CAD entrenched into the bearish mood – Scotiabank

FX Strategist at Scotiabank Eric Theoret remains bearish on USD/CAD in the short term, while adding that resistance appears limited.

Key Quotes

“Momentum signals are bearish and the RSI is in oversold territory approaching 25”.

“DMI’s are bearishly aligned and ADX trend strength is firming”.

“We highlight the importance of the 2017 low at 1.2969, coinciding with the 61.8% retracement of the 2016-2017 rally. There appear to be no major support levels ahead of the September 2016 low around 1.2820 and the August 2016 low in the mid-1.27s. Resistance appears limited”.