USD/CAD headed to 1.23 area or 1.2500? - Scotiabank

Despite a slight pick up in the dollar today, analysts at Scotiabank remain neutral on the outlook for the CAD.

Key Quotes:

"The broader trend in USD/CAD remains soft and the sell-off from the 1.26/1.29 range breakdown remains incomplete from a technical perspective."

"However, the market nearly reached the full measured move target (1.2335) last week and current price action looks consolidative for the USD."

"We think there is a chance of the USD testing the low 1.23 area. Above 1.2460 will suggest more relief for the USD and a push back to the 1.25 area at least."