USD/CAD: Loonie’s technical picture has a negative undertone – Scotiabank

The CAD remains soft near recent range lows. Economists at Scotiabank analyze USD/CAD outlook.

1.3785 should remain strong resistance in the week ahead

The CAD’s technical picture has a negative undertone still. 

The USD trend higher retains bullish momentum on the daily and weekly studies. The USD continues to encounter selling pressure above 1.37, however, and USD gains remain shy of the early October high at (and the strong, bearish rejection of) 1.3785. This area should remain strong resistance in the week ahead.

Support is 1.3640, with the USD liable to leak a bit lower to key, short-term support at 1.3570 below there.