USD/CAD to retest early December low in the upper 1.34s on a break below 1.3550 – Scotiabank

FXStreet Insights Team FXStreet

USD/CAD is marking time trading around the 1.36 point. Economists at Scotiabank analyze the pair’s outlook.

Risks are tilted to the downside

Spot losses Friday reversed sharply from the intraday low around 1.3550 which likely sets the near-term range base for the USD.

Short-term trading patterns suggest better USD selling interest above the 1.36 area, however, with firmer resistance around 1.3625.

Trend momentum has slipped into neutral on the short-term chart but still leans bearish on the longer-run oscillator, suggesting risks are tilted to the downside overall.

A break below 1.3550 may see the USD weaken back to retest the early December low in the upper 1.34s.

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FXStreet Insights Team

FXStreet

The FXStreet Insights Team is a group of journalists that handpicks selected market observations published by renowned experts. The content includes notes by commercial as well as additional insights by internal and external analysts.

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