USD/CAD: Overbought but seen sideways into year end – Rabobank

Rabobank’s FX Strategy team observes that CAD net shorts have risen again after a recent collapse. USD/CAD has continued to grind higher, gaining 2.77% from recent lows to 1.414, with the 14‑day RSI indicating overbought conditions. Rabobank expects a short‑lived pullback but ultimately sees USD/CAD trading sideways between 1.41 and 1.42 through year end.

Sideways Dollar-Loonie view into year end

"CAD net shorts have picked up again, after collapsing the prior two weeks."

"USD/CAD continues to grind higher, up 2.77% from recent lows to 1.414."

"The 14D RSI suggests USD/CAD is currently overbought, so we may see a short-lived reversal in the near term."

"Rabobank sees USD/CAD trading sideways between 1.41 and 1.42 through year end."

(This article was created with the help of an Artificial Intelligence tool and reviewed by an editor. Know more.)