USD/CAD keeps the neutral bias so far – Scotiabank

FX Strategists at Scotiabank noted the pair’s near term outlook stays neutral with resistance expected at 1.3050/80.

Key Quotes

“USDCAD has yet to break out of its recent consolidation range with congestion centered around 1.3000”.

“Trend and momentum indicators are modestly bearish however their magnitude is relatively muted. The weekly chart is showing a third consecutive decline testing the 100 week MA (1.2976) for the first time since mid-June”.

“We remain bearish targeting the 100 day MA (1.2963) and we note the absence of any additional support ahead of the 1.2900-1.2920 area. Near-term resistance is expected between 1.3050 and 1.3080”.