Canadian Dollar: Range signals possible reversal against US Dollar – Scotiabank
Scotiabank analysts Shaun Osborne and Eric Theoret note that the Canadian Dollar (CAD) is steady against the US Dollar (USD) near 1.3800, with fair value for USD/CAD estimated at 1.3672. They highlight that technicals are showing a stalled rally near the 200-day moving average.
CAD seen steady
"The return to normalized market conditions should provide for some directional movement following Monday’s holiday related consolidation."
"Our FV estimate for USD/CAD is currently at 1.3672, suggesting stronger fundamental levels for the CAD."
"Bullish/neutral—USD/CAD’s latest rally looks to have stalled around the 200 day MA (1.3812), with intraday price action showing a clear flat range roughly bound between 1.3800 and 1.3820."
"The stalling has been echoed in the momentum indicators, and we note a slight moderation in the RSI back toward the lower 60s. A bearish reversal from here would immediately target 1.3750, a level that roughly corresponds to the 50 day MA (1.3751). To the upside, we see limited resistance ahead of 1.3900."
(This article was created with the help of an Artificial Intelligence tool and reviewed by an editor.)
