USDCAD: Losses to resume on a break under 1.3255/65 in the short run – Scotiabank

USDCAD slides back below 1.3300 mark. Economists at Scotiabank expect the pair to sustain further losses on a break below 1.3255/65.

A broader turn may be developing

“Intraday and daily trend strength signals are aligned bearishly for the USD and the weekly DMI has clearly moderated from the strongly bullish position seen through Sep/Oct.”

“Longer-term (monthly) price signals suggest a broader turn in the USD may be developing but we think there is likely to be significant support for the USD around the 1.30 level (major congestion zone from 2021/22).

“Minor USD gains (to the low/mid 1.33s) look a sell.”

“We expect USD losses to resume on a break under 1.3255/65 in the short run.”