USD/CAD set to extend its drop below 1.3690 support – Scotiabank

The loonie firms modestly ahead. Economists at Scotiabank expect the USD/CAD pair to slide below 1.3690 in the near-term.

Broader outlook is somewhat mixed

“USD/CAD cast a marginally negative look to the very short-term charts, with the USD testing the 1.3750 twice before edging lower. That trend rather implies modest downside prospects for the USD in early trade below 1.3690 support, from a purely technical perspective.”

“The broader outlook is somewhat mixed, with the USD holding above the 1.36 area that we think is pivotal for the trend in the short run but holding a net loss on the week so far, suggesting stiff-ish resistance in the low/mid 1.38s remains.”