USD/CAD: Minor gains remain a sell as the downtrend persists – Scotiabank

Economists at Scotiabank analyze USD/CAD technical outlook.

Limited scope or potential for the USD to strengthen

Spot’s move off the intraday low reached earlier in London trade puts a mildly positive spin on short-term price action but the broader downtrend in USD/CAD persists and remains deeply entrenched across short, medium, and long-term charts. From a technical perspective, there is limited scope or potential for the USD to strengthen and minor gains remain a sell as the downtrend persists. 

Resistance is 1.3175/80 and, firmer, at 1.3200/25. 

Support is 1.31 and 1.2980/90.