USD/CAD should remain supported on moderate dips – Scotiabank
|The Canadian dollar (CAD) has gained a little ground on the session. Economists at Scotiabank analyze Loonie’s outlook.
Technicals warrant attention
Spot losses from the intraday high on Wednesday leave a bit of a dent in the short-term technical outlook for USD/CAD.
A bear reversal pattern developed on the 6-hour chart and the daily pattern of trade suggests a stall in the USD’s bull move against the 50% retracement resistance from the USD’s Q4 decline. This warrants close attention.
Underlying trend momentum remains USD-bullish, suggesting that the USD should remain supported on minor dips for now.
Initial support sits at 1.3440/1.3450. More important support is at 1.3410/1.3415; weakness below here would point to deeper USD losses.
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