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USD/CAD: Door open for renewed weakness ahead – Scotiabank

The CAD has drifted a little lower in quiet trade. Economists at Scotiabank analyze USD/CAD technical outlook.

Softer trading remains the more likely direction in the coming days

Spot gains in very quiet trade yesterday suggest a consolidation in the USD’s recent softness but leave the door open for renewed weakness ahead. 

Price may be carving out a small bear wedge or flag pattern amid a sustained and deeply entrenched USD bear trend on the charts. 

Short-term price gains might extend to the mid/upper 1.32s but weakness below 1.3195 intraday will point to renewed USD weakness. 

Softer trading for the USD remains the more likely direction for this market in the coming days.

 

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