USD/CAD: The technical picture retains a negative undertone for Loonie – Scotiabank

The CAD has struggled over the past couple of weeks. Economists at Scotiabank analyze Loonie’s outlook.

USD looks heavily overbought already on the daily and weekly charts

The technical picture retains a negative undertone for the CAD. Trend momentum is USD-bullish across short, medium and long-term DMIs. 

Short-term support is 1.3790 and 1.3740/1.3750.

The only potentially positive pointer for the CAD is that the USD looks heavily overbought already on the daily and weekly charts. In particular, the weekly slow stochastic is not ‘confirming’ the USD’s move higher last week – a warning signal on the sustainability of these gains.

Resistance is 1.3875/1.3880.