Economists at Scotiabank analyze USD/CAD technical outlook.
Resistance now aligns at 1.3175/00
Spot losses have extended far enough below the 1.32 area now to make the technical break (through the 50% retracement of the 2021/22 move up at 1.3224) more sustainable.
Recall that USDCAD’s loss of support at 1.3315 earlier this month triggered a double top (1.3660/65) which implies downside risk to the 1.2980/90 area in the next few weeks.
Look for resistance now at 1.3175/00.
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