Eric Theoret, FX Strategist at Scotiabank, has reiterated the bearish outlook on the pair in the short-term. Key Quotes “Momentum indicators are bearish and USDCAD is flirting with a break of Wednesday’s multi-month low”. “However, positive divergence has emerged as the RSI has failed to confirm the most recent lows in spot”. “DMI’s are also softening in tandem. USDCAD is at the lower end of a descending wedge formation—these are typically resolved with a reversal. The wedge would be violated on a break below 1.3200”. For more information, read our latest forex news.