USD/CAD: Upside momentum wanes, further losses to be witnessed on break below 1.2650 – Scotiabank

The CAD has extended gains against the USD to probe the mid-1.26s. Price action suggests the pair may consolidate around this area, economists at Scotiabank report.

Upside momentum in the USD/CAD has waned

“USD/CAD may continue to find support in the low/mid 1.26s for now but, at the very least, we see limited scope for USD/CAD gains at present and continue to prefer fading USD rallies.”

“Upside momentum in the USD has waned in the past few session and broader signals suggest solid resistance above the market in the mid-1.28s.” 

“Intraday, we see USD resistance at 1.2700 and 1.2780.”

 “Support is 1.2650 and – key – at 1.2575/85.”