The economists of Scotiabank report that the CAD needs to break below 1.35 against the USD to improve.
Recent recovery runs out of momentum
Monday’s rally from the intraday low in the USD retested the breakout of trend support that the market had established earlier in the session. The support-turned-resistance trend held, but easy gains for the USD continue to be a feature of this market and it gives the clear impression that the upside is the path of least resistance for the USD/CAD.
However, there are signs in the daily price action (after the USD closed lower on Monday) that the recent USD rally is running out of momentum.
The 1.3575 zone is resistance and a possible double top; a break below 1.3500 triggers that signal and implies downside potential to 1.3425.
Source: Fx Street
I am Joshua Winder, a senior-level journalist and editor at World Stock Market. I specialize in covering news related to the stock market and economic trends. With more than 8 years of experience in this field, I have become an expert in financial reporting.
