USD/CAD: Push under 1.3495 shouldpoint to losses towards the low/mid 1.34s – Scotiabank

CAD rebound stalls around 1.35. Economists at Scotiabank analyze Loonie’s outlook.

Risks tilted to the downside for USD/CAD
Grinding gains for the CAD this week are basing around the 1.35 high/low support point. But there has been a bit of a change in trend dynamics over the past few days which should, in the short run at least, keep risks tilted to the downside for USD/CAD.

Intraday DMI signals are bearish and the daily study is flipping to (marginally) negative. Weekly trend dynamics are slipping to nearer neutral. Combined, these signals suggest weak upside impulses at least for the USD.

Intraday resistance should emerge on USD gains to the 1.3540/1.3450 area. A push under 1.3495 should, however, point to USD losses towards the low/mid 1.34s.