There is little incentive to push the Loonie higher – Scotiabank

USD/CAD little changed but continues to pressure 200-Day Moving Average. Economists at Scotiabank analyze the pair’s outlook.

Support is 1.3375/1.3400

There is little incentive for investors to push the CAD higher while the risk environment remains challenging.

Price signals are very mixed on the intraday and daily charts but the broader track high in the USD over the past month is evident and is generating bullish trend momentum signals on the shorter-term DMI signals.

Spot has found some resistance around the 200-DMA (1.3450) – in that the USD has failed to close above 1.3450 on a daily basis this week – but that barrier remains under pressure today. 

There is some developing resistance above the 200-DMA at 1.3490/1.3500. Support is 1.3375/1.3400.