USD/CAD sees resistance at 1.2970/90 near term – Scotiabank

FX Strategists at Scotiabank remain neutral/bearish on the pair while they note a decent resistance in the 1.2970/90 band.

Key Quotes

“The USD has consolidated late week losses around the 1.29 area over the past 24 hours and despite the strong rebound in funds from Thursday’s low, we think near-term risks are tilted lower for the USD still”.

“Intraday patterns suggest the USD is consolidating in a bear flag formation and we expect USD weakness to resume on a break under 1.2905 this morning. We see support in the mid 1.28s and, key, last week’s low at 1.2804, which looks very reachable in the event of a push under 1.29. We see resistance at 1.2970/90”.