USD/CAD to test strong support in the upper 1.33s on a break under the 1.3495 point – Scotiabank

Loonie holds gains to the 1.35 area. Economists at Scotiabank analyze the USD/CAD outlook.

Short-term technical trends are leaning positive for the CAD

Short-term technical trends are leaning positive for the CAD. The USD has been trading more defensively since peaking and turning lower from the 1.37 zone and the bear trend is developing some decent momentum on the short-term chart. Noted support at 1.3495/1.3500 is, however, hampering additional CAD gains. 

A break under the 1.3495 point should see the CAD progress to the low 1.34 area and, possibly, test stronger USD support in the upper 1.33s.