USD/CAD: Risks still appear tilted to the topside – Scotiabank

FXStreet Insights Team FXStreet

USD/CAD returns above 1.34. Economists at Scotiabank analyze the pair’s outlook.

Corrective pressure for a higher USD/CAD should be sustained

The USD advanced to near the 38.2 % retracement derived from the Q4 USD sell-off at 1.3454 Thursday before easing back. USD resistance in the mid-1.34 area is reinforced by the 40-Day Moving Average (1.3442 today).

Choppy trading late last week clouds the very near-term technical outlook for the USD but broader (weekly) signals remain USD-bullish and suggest corrective pressure for a higher USD should be sustained.

Look for support on USD dips to the mid-1.33s and (stronger) at 1.3275/1.3300.

Above 1.3450 targets 1.3538 (50% retracement resistance).

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FXStreet Insights Team

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