USD/CAD: Greater scope for movement perhaps more to the downside – Scotiabank

The Canadian Dollar (CAD) is a moderate underperformer on the session so far. Economists at Scotiabank analyze USD/CAD outlook.

Scope for gains is limited

The USD retains a firm undertone but last week’s ‘inside range’ week suggests some weakening in USD/CAD’s recent uptrend.

Resistance sits at 1.3540/1.3550 and – firmer – at 1.3580/1.3600.

Narrowing Bollinger bands also suggests some risk of an increase in near-term volatility, with the greater scope for movement perhaps more to the downside at the moment.

USD/CAD sees some short-term trend support at 1.3475/1.2480 but a clear move below 1.3452 (40-DMA today) is needed to prompt some technical softness in funds.