Eric Theoret, FX Strategist at Scotiabank, noted the bearish perspective for the pair in the short term. Key Quotes “USDCAD has edged a big figure or so off the midweek low point as the markets consolidate the CAD’s latest gains”. “We think the broader backdrop for the CAD remains positive—stronger domestic data, narrower short-term rate spreads and firmer commodity prices have all combined to lift the CAD off its early year lows”. “We think the CAD rebound is liable to extend a little more in the coming weeks before a broader stabilization sets in through mid-year”. “The USD is consolidating in a tight-ish range but short-term trading patterns are shaping up as potentially bearish for funds (bear wedge). We spot resistance at 1.2900 intraday and see support at 1.2812”. For more information, read our latest forex news.