USD/CAD: Risks are geared towards a test of support at 1.3440/1.3450 – Scotiabank

USD/CAD has drifted a little higher in quiet trade. Economists at Scotiabank analyze the pair’s outlook.

Resistance is 1.3520/1.3530

The USD is trading well off the early week peak, with spot again finding it impossible to sustain gains through the 1.3500 area. This is the fourth week in five (at the moment) that USD/CAD progress above 1.3500 has stalled and reversed back under the figure by the end of the week. 

Intraday price movement suggests a consolidation in the USD’s drift but trend momentum is tilting more negative for the USD on the short-term studies, suggesting risks are geared towards a test of support at 1.3440/1.3450.

Resistance is 1.3520/1.3530.