Eric Theoret, FX Strategist at Scotiabank, noted the short term outlook on the pair remains neutral/bullish.

Key Quotes

“USDCAD has broken back above the descending trend line drawn from the December-March highs and returned to the 50 day MA at 1.3501”.

“We highlight a clear trend shift in USDCAD over the past week, pushing off the May 25 low with a sequence of higher lows and higher highs”.

“Momentum signals have softened from bearish to neutral and DMI’s have converged. We note the absence of meaningful resistance between 1.3520 and 1.3600, and highlight the importance of near-term support at 1.3450”.