USD/CAD could slip back to 1.3086 – Scotiabank

FX Strategists at Scotiabank noted the pair risks further downside to the 1.3086 level in the near term.

Key Quotes

“Momentum indicators have faded from bullish to neutral and the DMI’s are confirming a shift in the balance of risk”.

“USDCAD has yet to break through recent lows in the 1.3110 area however we remain bearish on the basis of the weekly reversal completed in late June and the shooting star completed last week”.

“We look to near-term weakness toward the 50 day MA at 1.3086 and anticipate near-term resistance between 1.3180 and 1.3200”.