CAD/MXN: A push above 12.95 implies upside risk towards 13.65 – Scotiabank

CAD/MXN shows signs of a reversal. Economists at Scotiabank analyze the pair’s outlook.

Bullish above 12.95

CAD/MXN continues to show signs of developing technical strength.

A push above 12.95 implies upside risk towards 13.65 over the next 2-4 months. Longer-term charts are also leaning more CAD-bullish; a high monthly close for the CAD in September (at or near current levels) would be bullish (forming the third leg of a ‘morning star’ pattern on the monthly chart). 

Short-term trend momentum is bullish and we note a pick up weekly momentum in the CAD’s favour (albeit at still very low levels). 

CAD support is 12.80/12.82 and 12.70.