USD/CAD’s rebound tested the mid-1.34 resistance area on Thursday. Economists at Scotiabank analyze the pair’s outlook.
Trend dynamics remain USD-bullish
Trend dynamics remain USD-bullish, with steady progress in the USD since late December backed by some strengthening in the intraday and daily DMIs.
USD gains peaked on Thursday near the 38.2% Fib retracement resistance at 1.3453 (from the Q4 USD sell-off) and the mid-1.34 area may remain firm resistance in the near-term (note the 40-DMA at 1.3449).
USD support should remain firm on dips to the upper 1.33s. More corrective USD gains to the mid-1.35s remain a likelihood in the next few weeks.
Source: https://www.fxstreet.com/news/usd-cad-corrective-gains-to-the-mid-135s-remain-a-likelihood-in-the-next-few-weeks-scotiabank-202401121340