USD/CAD: Limited scope for rebounds, ongoing pressure on the downside toward the 1.31 area – Scotiabank

USD/CAD is soft but holding within Wednesday’s range. Economists at Scotiabank analyze the pair outlook.

The underlying trend is USD-negative, but…

The underlying trend is USD-negative but trend dynamics are not quite as strong here as in some of the other USD pairs. Trend oscillators are, however, aligned bearishly for the USD across short, medium, and longer-term studies which continues to point to limited scope for USD rebounds and ongoing pressure on the downside towards the 1.31 area in the near term. 

Resistance is 1.3200 and 1.3250.