USD/CAD: Losses should extend towards 1.3290 in the short run – Scotiabank

USD/CAD staged a solid rejection of key resistance at 1.3495 yesterday. Economists at Scotiabank expect the pair to extend its fall towards 1.3290 in the near term.

Clear reversal from the upper 1.34s

“Short-term price patterns imply a clear reversal from the upper 1.34s, with the USD extending losses under minor support (rising channel on the intraday chart) at 1.3410/15 (now intraday resistance). Losses should extend towards 1.3290/00 in the short run from here.” 

“The overall pattern of trade keeps the USD on track for a retest of the 1.32 area and, eventually, a drop to the measured move target derived from the Head and Shoulders of 1.3025.”