Scotiabank: Bullish Signals Point to Further CAD Gains Against USD
Scotiabank analysts believe that the Canadian dollar (CAD) is gaining strength against its US counterpart (USD), according to their latest FX analysis. The bank's technical view points to a bullish near-term outlook for the USD/CAD pair, driven by momentum signals and chart patterns.
The recent break below certain support levels has shifted the short-term bias in favor of the Canadian dollar, Scotiabank notes. This is partly due to the relatively hawkish stance from the Bank of Canada compared to the Federal Reserve, as well as stability in oil prices, which has provided support for the CAD.
The bank's analysis focuses on key technical levels and moving averages, often used by traders to gauge trend direction. Scotiabank's assessment is based on chart patterns that suggest the USD/CAD pair may be poised to extend its downward move, meaning the Canadian dollar could strengthen further against its U.S. counterpart.