USD/CAD: Losses to extend back to the 1.37 area on a break below 1.3775/1.3785 – Scotiabank

USD/CAD is trading in the low 1.38s. Economists at Scotiabank analyze the pair’s outlook.

Short-term price patterns suggest a minor top

Short-term price patterns suggest a minor top, at least, developed around Wednesday’s peak just ahead of the 1.39 level. 

Weaker price movement is pressuring minor support at 1.3820, ahead of a more important support zone at 1.3775/1.3785. Weakness below here should see USD losses extend back to the 1.37 area.