USD/CAD holds below 1.36. Economists at Scotiabank analyze the pair’s technical outlook.
Losses through the upper 1.35s to open up the low 1.35s
Short-term price patterns suggest a minor consolidation in the USD after spot edged back from last week’s peak near 1.37. The pattern of trade suggests a small bear wedge pattern in development which tilts directional risks to the downside for spot.
USD gains are curbed by resistance in the low 1.36 zone.
Losses through the upper 1.35s (and below Monday’s low around 1.3560/65) should see spot edge back to the low 1.35s.
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