USD/CAD to retest October low just under 1.23 in the next few weeks – Scotiabank

The Canadian dollar is modestly lower while intraday and daily charts highlight a mixed picture for USD/CAD currently. All in all, economists at Scotiabank expect the pair to break under 1.2450 and test the October low just below the 1.23 level.

Longer-term chart patterns do reflect a solid rejection of 1.2950

“Daily chart reflects solid demand for the USD on dips over the past week or so while intraday chart patterns indicate solid USD supply on intraday gains since Monday. The result is a fairly well-established 1.2450-1.2570 range that has played out this week.” 

“Longer-term chart patterns do reflect a solid rejection (again) of 1.2950; trend indicators are tilted bearish for the USD across a range of timeframes; the Bearish Head & Shoulders breakdown (below the neckline trigger at 1.2640) remain in play. All of this points to solid USD resistance on minor gains, an eventual push under 1.2450 and, we expect, a retest of the Oct low just under 1.23 in the next few weeks.”