USD/CAD: The makings of a deeper rebound are there – Scotiabank
|USD/CAD rose strongly on Tuesday, pushing through the 1.3540/1.3550 area. Economists at Scotiabank analyze the pair’s outlook.
Key support at 1.3340/1.3350
Given the resiliency of the 1.3540 area in the past few weeks, it may come down to where we close on the week to determine whether the break higher will hold and develop (into a push on to the low 1.3600s) or fade and dump the USD back into a 1.3350/1.3550 range.
Trend oscillators have perked up bullishly for the USD on the short-term DMI studies and the weekly DMI leans modestly USD-bullish as well.
The makings of a deeper USD rebound are there but there is a bit of a ‘show me’ aspect to price action at this point; bullish-leaning oscillators are still quite weak across all time frames.
USD support is 1.3520/1.3530 and 1.3400/1.3410 (40-DMA at 1.3402) ahead of key support at 1.3340/1.3350.
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