USD/CAD: Extension of the recent 1.31/1.33 chop may develop – Scotiabank

USD/CAD turns neutral within 1.31/1.33 range, economists at Scotiabank report.

USD/CAD’s technical tone has turned neutral

The broader range for USD/CAD is well-defined by technical resistance at 1.3350/75 and support at 1.3105/15. 

Shorter-term trend momentum has weakened – to neutral on the daily DMI – and an extension of the recent 1.31/1.33 chop in spot may develop from here. 

USD/CAD trends remain bearish from a longer run point of view following the USD’s break under long run trend support (1.3350 on the weekly chart). 

USD/CAD will have to gain through 1.3385/90 to show more obvious technical strength at this point.