USD/CAD: Rebound to fade around the 1.2720 zone – Scotiabank

The USD/CAD continues to drift higher but the upside is limited to low 1.27s, in the view of economists at Scotiabank.

Support is seen at 1.2670/60

“After solid gains earlier in the week, some retrenchment in the CAD is not too surprising but we still rather view USD upside potential against the CAD as limited.”

“Short-term price signals suggest the USD rebound from Wednesday’s low can extend modestly after cracking minor resistance (inverse Head & Shoulders trigger) at 1.2665; upside potential extends to the 1.2720 zone (near the 50% retracement of the early week USD drop at 1.2730) in the next day or so.” 

“Support is 1.2660/70.”