USD/CAD: Significant push outside of the range is needed to generate more directional momentum – Scotiabank

The CAD has picked up a little ground against a generally softer USD. Economists at Scotiabank maintain a neutral/bearish USD/CAD stance.

Trend signals are weak on the intraday and daily oscillators

‘Neutral’ because the sideways pattern of trade is extending a little further below resistance in the low/mid-1.32s. And ‘bearish’ because the broader pattern of short-term trading is still shaping up negatively (bearish wedge) for the USD, with the base of the pattern (1.3160) coming under a little pressure. 

Trend signals are weak on the intraday and daily oscillators, suggesting that a significant push outside of the range is needed to generate more directional momentum from here.