USD/CAD should face resistance in the 1.3180-1.3200 area – Scotiabank

FX Strategists at Scotiabank remain neutral/bullish on the pair while added that resistance is seen in the 1.3180/1.3200 band.

Key Quotes

“USDCAD is quietly consolidating just below critical technical resistance in the 1.3120-1.3130 area corresponding to the upper bound of the descending trend channel from June”.

“Momentum indicators are modestly bullish however the ADX trend strength indicator is remarkably weak. We look to near-term support around the 100 day MA (1.3068) and would anticipate additional near-term resistance closer to the 1.3180-1.3200 area”.