USDCAD weaker but decline perhaps losing momentum - Scotiabank

Analysts at Scotiabank notes that the USDCAD retains a soft undertone after two weeks of steady losses. 

Key Quotes

“Short-term charts do suggest that the USD’s slide is losing momentum (a descending wedge on the hourly chart and small, inside range on the 6-hour chart) but there is scant—as in no—sign of a reversal in the daily trend lower at the moment. Spot has lost important support in the low/mid 1.32 area this week but signs of a slowing in the decline is coming a little ahead of the 76.4% retracement of the Oct/Nov rally at 1.3145.”

“We note important, long-term support below here at 1.3090/00, where the base of the broader USD bull trend currently resides.  Short-term trend momentum signals are aligned bearishly for the USD, suggesting the USD may struggle to improve significantly at the moment.  We think the USD needs to get back above 1.3240/50 in order to stabilize or improve from here.”