Rabobank Expects Sideways Trading for USD/CAD into Year End
Rabobank's FX Strategy team has observed a rise in CAD net shorts after a recent collapse. This is despite USD/CAD continuing to grind higher, with a gain of 2.77% from recent lows to 1.414.
The 14-day RSI indicates overbought conditions for the pair, which may lead to a short-lived pullback in the near term.
Rabobank expects USD/CAD to trade sideways between 1.41 and 1.42 through year end.