USD/CAD faces resistance at 1.2750/1.2800 – Scotiabank

FX Strategists at Scotiabank remain neutral/bullish on spot, noting that resistance levels lie at 1.2750 followed by 1.2800.

Key Quotes

“The outlook for relative central bank policy is showing signs of stabilization and may offer modest support to CAD. OIS are pricing a 50% chance of an April BoC hike and the 2Y U.S.-Canada yield spread has steadied just below 45bpts. Measures of sentiment remain ambiguous as risk reversals flatten out around the midpoint of their recent range”.

“USDCAD has yet to sustain a break out of its recent closing range roughly bound between 100 day MA (1.2631) support and 200 day MA (1.2694) resistance. Momentum signals remain bullish and DMI’s are bullishly aligned. The recent ‘evening star’ candle formation has been violated. Near-term support is expected at 1.2620. Resistance is expected at 1.2720, 1.2750, and 1.2800”.