Strongly developing downtrend on the charts – Scotiabank

USD/CAD losses to the mid-1.35 area in early Asian trade have reversed steadily. Economists at Scotiabank analyze the pair’s outlook.

CAD trend remains positive

Spot has rebounded from the daily low just under 1.3550 but gains are limited in the context of the recent slide in the USD and the market has a lot more work to do in the next few days if price action is to signal a USD reversal of any sort. 

At best, price signals suggest a pause in what remains a strongly developing downtrend in USD/CAD on the charts. 

USD rebounds should meet resistance around 1.3600/1.3610 and – stronger – at 1.3650/1.3660.