CAD has extended its gains against USD to lows of 1.3550. Scotiabank economists analyze the outlook for the CAD.
Weak tone at the end of the week
USD/CAD gains were capped at the 1.36 area on Thursday and the CAD’s firm rebound from its intraday low leaves the USD trading on a soft note towards the end of the week.
USD/CAD losses extended to test the 200 DMA zone (1.3517) earlier, while the USD has stabilized, the lack of a more significant bounce keeps the technical focus on the downside and a test of the figure zone (50% Fibonacci retracement of the July/November recovery at 1.3495). A push through this zone would target 1.34.
Resistance at 1.3600/1.3620 and 1.3650/1.3660.
Source: Fx Street
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