USD/CAD faces key resistance above 1.3480 – Scotiabank

FX Strategist at Scotiabank Eric Theoret assessed the current prospects for the pair, noting the upside faces strong resistance in the 1.3480 region.

Key Quotes

“Bearish momentum indicators are softening and DMI’s are converging”.

“USDCAD is quiet consolidating just below its 50 day MA (1.3495), respecting the ascending trend line drawn from the February -April lows (support ~1.3400) while threatening the descending trend line drawn from the December-March highs (~1.3460)”.

“These trend lines remain crucial to the near-term path. We note the importance of near-term resistance above 1.3480”