He USD/CAD presses support at 1.3390/1.3400. Scotiabank economists analyze the pair's outlook.
Gains to extend above 1.3390/1.3400
Despite Friday's sharp intraday swings, the long-term chart still points to the risk of USD/CAD strengthening a little more in the near term, at least.
The weekly chart shows a bullish “hammer” candle developed during the turn of the year. A bullish USD close last week – despite strong USD intraday swings on Friday – adds emphasis to the bullish Commerce pattern and supports the prospect of some further corrective gains in the USD in the coming weeks towards 1.34/1.35.
Breaking the high/low resistance of 1.3390/1.3400 will reinforce the short-term bullish momentum.
Support should be firm on declines towards the area below 1.33 or 13350.
Source: Fx Street
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