USD/CAD: Scope for more significant losses is getting narrower – Scotiabank

USD/CAD steadies after retest of 1.35. Economists at Scotiabank note that the Canadian Dollar has struggled to advance against a soft greenback.

Firm resistance seen at 1.3490/00 

“USD gains late yesterday saw spot challenge the 1.35 area, which held the USD advance to keep the longer run bear pattern (Head and Shoulders reversal) in play. The reality is, however, that the CAD has found it hard to progress against a soft USD overall in the past couple of weeks and absent a concerted run lower in funds in the near-term, the scope for more significant losses is getting narrower.” 

“Intraday resistance should be firm at 1.3490/00.” 

“Support is 1.3400/10; weakness below here should give the USD a clearly negative jolt.”