After closing out the weekly strongly and outperforming on Friday, the CAD is little changed on the day against the USD. Economists at Scotiabank analyze USD/CAD outlook.
Support is 1.3570/1.3590
The USD has recovered to the 1.3650 area where it does appear to be meeting firm resistance intraday.
The drift lower in the USD since early November has the look of a ‘slow motion’ rollover to me – in that the technical tone has clearly shifted (bearishly for the USD) but the CAD is finding it hard to make meaningful progress at the moment.
Loss of trend support off the July lows for the USD tilts risks more clearly to the downside for funds in the near-term at least. It also should mean strong resistance on USD gains to the 1.3665/1.3670 area.
Support is 1.3570/1.3590, then 1.3495/1.3500.
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