Selling pressure above 1.35 may check the advance in the short run – Scotiabank

CAD is little changed on the session against a mostly softer USD. Economists at Scotiabank analyze USD/CAD outlook.

USD/CAD’s uptrend remains solid

USD/CAD’s uptrend remains solid on the short-term charts and well-supported by trend dynamics (DMI oscillators). Intraday price patterns do suggest some stronger selling pressure emerged above 1.35, however, which may check the USD’s advance in the short run. 

Minor trend support at 1.3470 in early trade here will determine whether the USD uptrend remains intact, and the USD presses on to the mid-1.35s or whether funds edge back to the low/mid-1.34 range.