USD/CAD: Key support at 1.3360 to be under a bit more pressure in the weeks ahead – Scotiabank

The Canadian Dollar (CAD) trades steady on the day, well supported on dips to mid-1.3500s against the US Dollar (USD). Economists at Scotiabank analyze USD/CAD outlook.

Firm resistance now around 1.3540

The CAD traded well off the intraday low Friday and failed to secure a higher weekly close on the USD that was looking possible late last week. Still, the longer run charts do reflect a stalling in the USD’s new year rally and imply firm resistance now around 1.3540 (highs from last week and earlier in January, 50% retracement resistance from the USD’s Q4 drop). 

Near-term technicals are neutral but the broader pattern of trade favours fading USD gains through the low/mid-1.3500s and for the USD to put key support at 1.3360 under a bit more pressure in the weeks ahead.