USD/CAD to find support on dips to the 1.3325/1.3350 area – Scotiabank

USD/CAD establishes below 1.34. Economists at Scotiabank analyze the pair’s outlook.

Intraday and daily trend strength oscillators are neutral

USD/CAD has edged ever so slightly lower since Tuesday’s test of the 1.34 area, without really looking that well offered, USD losses have eased below minor support at 1.3375 today but there has been little follow through selling pressure.

Intraday and daily trend strength oscillators are neutral, reflecting the lack of dynamism in funds now. Longer-term risks remain geared towards some corrective USD gains after the late December (weekly) bull reversal in the USD, however. 

Look for USD support on dips to the 1.3325/1.3350 area.