USD/CAD set to drop towards the 1.2645/35 area – Scotiabank

The loonie has posted two solid days’ worth of gains and looks to be heading for a third as USD/CAD holds losses below the 1.27 zone. Economisst at Scotiabank expect the pair to dip to the 1.2645/35 zone.

Resistance located at 1.2705/10

“We continue to target a drop to the low 1.26 zone (1.2635/45) at least in the short run; trend momentum is picking up on the intraday DMI oscillators, which should limit the USD’s ability to rally today, while longer run DMI signals remain aligned bullishly for the USD, which suggests scope for USD losses –right now – is limited.”

“We spot USD/CAD resistance at 1.2705/10 intraday.”