USD/CAD: The push higher will continue – Scotiabank

Loonie remains under pressure. Economists at Scotiabank analyze USD/CAD outlook.

“Heads I win, tails you lose”

There is a bit of a ‘heads I win, tails you lose’ feel to the CAD at the moment, with nothing seemingly going the CAD’s way.

Trend momentum indicators are aligned bullishly for the USD on the shorter-term DMI oscillators and while the USD rally looks overextended somewhat, the absence of any real sign of weakness in price action rather suggests the push higher will continue. 

Spot resistance from here is 1.3610 (where that trend line comes in on the intraday chart) and 1.3650/1.3660. 

Support is 1.3530/1.3540.