USD/CAD: Losses to extend towards the 1.3375/1.3425 area – Scotiabank

USD/CAD breaks below 100-Day Moving Average (DMA). Economists at Scotiabank expect the pair to extend its decline toward the 1.3375/1.3425 area zone.

Firm resistance on USD rebounds to the 1.35 area

“Steady losses in USD/CAD through the past week leave the USD’s technical undertone looking soft and prone to more losses.”

“USD/CAD has broken below the 40 (1.3593) and 100 (1.3523) DMAs supports and trend oscillators are aligned bearishly for the USD on the intraday and daily charts.”

“We look for firm resistance on USD rebounds to the 1.35 area now and for USD losses to extend towards the 1.3375/1.3425 area.”