USD/CAD: Corrective potential may extend to the 1.3450/1.3550 range – Scotiabank

USD/CAD edges slightly lower after 1.34+ rebuff. Economists at Scotiabank analyze the pair’s outlook.

Underlying uptrend in place since the turn of the year remains intact

Momentum is weak and the underlying uptrend in place since the turn of the year remains intact. That should mean USD support around 1.3350/1.3360. 

A firm close on the week through last Friday continues to tilt broader risks to the topside and should also help limit scope for USD/CAD losses in the short run. 

Corrective potential may extend to the 1.3450/1.3550 range in the next few weeks.