USD/CAD: Clear technical path towards 1.3540 – Scotiabank

USD/CAD cracked technical resistance. Economists at Scotiabank analyze the pair’s outlook.

Intraday support on minor dips to 1.3475/1.3480

USD/CAD gains through noted resistance at 1.3440/1.3450 pave the way for more, corrective gains in the USD in the short run. 

The USD has a clear technical path towards 1.3540 (50% Fibonacci retracement of the Q4 USD sell-off), with a fuller recovery to 1.3624 (61.8% Fibonacci) not to be ruled out. 

Look for support on minor dips to 1.3475/1.3480 intraday (200-DMA at 1.3479), with stronger support at 1.3440/1.3450.