USD/CAD set to edge lower towards the 1.22 level – Scotiabank

USD/CAD has eased through the 1.24 area. Economists at Scotiabank highlight the potential for the Canadian dollar – they expect the USD/CAD pair to slump to the 1.22 region.

Loonie to take fuller advantage of high crude oil prices

“The pause in the broader USD rally paves the way for the CAD to take fuller advantage of high crude oil prices and wide/wider short-term spreads.” 

“We estimate fair value for spot to be nearer 1.2344 currently, taking into account the broader USD performance, and still rather feel that the window has opened – a little further – towards the CAD pushing on to 1.22/1.23 zone in the next few weeks.”

“A push below the Fib retracement support at 1.2367 opens up the downside for a push to 1.22.”

“Resistance is 1.2420/25.”