USD/CAD: Scope for additional gains is limited – Scotiabank

USD/CAD steadies after stock-driven surge on Wednesday. Economists at Scotiabank analyze the pair’s outlook.

Ongoing downside pressure

The sharp squeeze higher in the USD late on Wednesday left a small, bull signal on the 6-hour chart (outside range) but the lack of follow-through demand and weak price action in European trade suggests scope for additional USD gains is limited.

Trend strength oscillators still aligned bearishly on the intraday, daily and weekly oscillators, supporting the outlook for limited USD rebounds and ongoing downside pressure on spot.

Support is 1.3320/1.3330 and 1.3280/85. Resistance is 1.3375/1.3400.