Q1 rebound is losing momentum – Scotiabank

USD/CAD’s gains above 1.35oo were not sustained through the close of the week. Economists at Scotiabank analyze the pair’s outlook.

USD/CAD looking prone to a bit more softness through the upper 1.3400s

The charts suggest the 1.3540 retracement resistance point is still holding some influence over price action. And although there is no obvious sign that USD gains are reversing, the long upper shadows on the weekly candle chart (over) reflect better USD selling pressure emerging on gains through the mid/upper-1.3500s which perhaps suggests the USD’s Q1 rebound is losing momentum. 

USD/CAD resistance looks firm in the 1.3540/1.3580 zone and late week trading leaves spot looking prone to a bit more softness through the upper 1.3400s to retest 1.3420/1.3440. 

Key support remains 1.3360.