The USD/CAD is little changed to start the week, with spot holding in the mid 1.24s. Last week, the pair were halted by the 200-day moving average (DMA) at 1.2479, which is a sign of CAD strength but a minor bounce in the next few weeks is on the cards.

CAD to remain generally well-supported

“The overall technical tone remains consolidative and it is impossible to exclude the risk of USD/CAD creeping a little higher still in the next few weeks. But rejection of the 200-DMA is an important sign of resilience in the CAD, we think.” 

“USD support is 1.2415 and 1.2385.”

“Resistance is 1.2525/30.”