USD/CAD: Bull momentum is weakening – Scotiabank

USD/CAD is little changed on the day. Economists at Scotiabank analyze the pair’s outlook.

Intraday resistance should be firm around 1.3750/1.3775

The CAD’s technical position remains very fluid from a short-term point of view. But a lot of chop in spot over the past month does not diminish the importance of the big, bearish reversal signal on the weekly chart that formed at the start of the month.

USD bull momentum is weakening and spot is pressuring, if only gently, important support in the upper 1.36s (40-DMA at 1.3699 and trend support at 1.3660). 

Intraday resistance should be firm around 1.3750/1.3775.