USD/CAD may be prone to more corrective losses – Scotiabank

The CAD is one of the better-performing currencies in the session so far against the softer USD. Economists at Scotiabank analyze USD/CAD outlook.

USD/CAD slips under technical support

Spot is trading below trend support that has guided the USD higher consistently since the start of July (1.3545). Losses below here are the first real sign of technical USD weakness in some time. 

The USD rally is looking somewhat overextended and may be prone to more corrective losses in the short run at least. 

Resistance is 1.3545/1.3550 now. Support is 1.3400/1.3410.