MUFG Research discusses USD/CAD outlook and sees a scope for downside pressure to extend through the next key support level around 1.3080 in the near-term.
"Taking everything into consideration, USD/CAD appears more fairly valued now at closer to the 1.3200-level. Excessive Canadian dollar weakness from the end of last year has already corrected.
In the near-term the USD/CAD will remain under modest downward pressure if the price of oil continues to rebound and broad-based US dollar weakness extends further.
The next key technical support level for USD/CAD is provided by the 200-day moving average which comes in at 1.3080," MUFG argues.