USD/CAD to see further gains back to the 1.2775/1.2875 range – Scotiabank

USD/CAD has pushed higher to a fresh two-week high. Economists at Scotiabank expect the pair to extend its gains back to the 1.2775/1.2875 range.

Drop back under 1.2685 to relieve near-term upside pressure

“A high close on the week for the USD will confirm a bullish outside range week which will ease downward pressure on the USD.” 

“We note that shorter-term trend momentum indicators have flipped to more USD-supportive readings now.”

“The charts suggest some risk of USD gains extending back to the 1.2775/1.2875 range.”

“A drop back under 1.2685 will relieve near-term upside pressure on the USD but technically safer ground for the CAD remains distant (low 1.26s).”