USD/CAD to extend its slide towards the 2017-2018 lows at 1.2060 – Standard Chartered

The USD/CAD pair is refreshing five-week lows around mid-1.2400s. Technical signals suggest the downtrend has further to run while the fundamental outlook aligns, as reported by Standard Chartered.

Near-term conviction is for a weaker USD/CAD
“Leveraging US economic growth, an expansive Canadian budget and an increasingly hawkish BoC are CAD-positives.”

“Exiting current lockdowns and improving nationwide vaccination rates should be the next catalysts for the pair.”

“We expect a challenge and a likely break of the March low at 1.2360 and a decline towards the 2017-2018 lows at 1.2060.”

“Resistance is at 1.2650-1.2750.”