USD/CAD may hold between 1.3450/1.3550 for now – Scotiabank

USD/CAD continues to drift somewhat aimlessly within a well-established trading range. Economists at Scotiabank analyze the pair’s outlook.

Technicals suggest more of the same

Flat range trading and flat trend oscillators suggest the sideways movement in the USD/CAD pair will extend for a little longer at least. 

Last week’s ‘inside range’ week signal was a ‘heads up’ that the broader push higher in the USD may be stalling but there is no clear sign in price action that a softer USD trend is about to unfold. That does appear to be where the main directional risk lies from my point of view though. Price action may hold between 1.3450/1.3550 for now, however.