Rebound has further to run – Scotiabank

USD/CAD gains are nearing the 50% Fibonacci retracement of the USD’s Q4 slide at 1.3538. Economists at Scotiabank analyze the pair’s outlook.

Technical point to more losses

If markets continue to reprice March Fed risks, the USD is likely to remain well-supported.

Solidly bullish intraday and daily trend strength signals suggest the USD rebound, signaled by bullish price action around the turn of the year, has further to run still. 

Above 1.3540/1.3550, USD gains are liable to run on to the low/mid-1.36 range. 

Intraday support is 1.3480/1.3490 and 1.3445/1.3450.