Shaun Osborne, Chief FX Strategist at Scotiabank, analyzes USD/CAD technical outlook.

Trend momentum has turned bullish

A high close for the USD yesterday delivered a bullish cue for the daily USD/CAD chart via an outside range signal. 

Trend momentum has turned bullish on the short-term studies and has been weakened on the daily DMI. The setup suggests potential for some additional – but perhaps limited – USD gains in the short run as the USD corrects the sharp run lower through June.

I had expected firm USD resistance in the low/mid 1.32 area but the USD rebound yesterday increases the risk of gains extending to retest key resistance at 1.3315/25. 

Short-term support is 1.3190/00.