USD/CAD: Key support at 1.3360 to be under a bit more pressure in the weeks ahead – Scotiabank
|The Canadian Dollar (CAD) trades steady against the US Dollar (USD) on the day, with USD/CAD limited on approaches to mid-1.3500s. Economists at Scotiabank analyze USD/CAD outlook.
Firm resistance now around 1.3540
The CAD traded well off the intraday low Friday and failed to secure a higher weekly close on the USD that was looking possible late last week. Still, the longer run charts do reflect a stalling in the USD’s new year rally and imply firm resistance now around 1.3540 (highs from last week and earlier in January, 50% retracement resistance from the USD’s Q4 drop).
Near-term technicals are neutral but the broader pattern of trade favours fading USD gains through the low/mid-1.3500s and for the USD to put key support at 1.3360 under a bit more pressure in the weeks ahead.
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