USD/CAD: Push under 1.3605 to trigger a move to the low 1.35 area – Scotiabank

USD/CAD little changed in low 1.36s. Shaun Osborne, Chief FX Strategist at Scotiabank, analyzes the pair’s outlook.

More range trading in the near term

Short-term patterns suggest a firm block on USD/CAD around 1.3690/1.3700 and support sitting just above 1.36, the low from earlier this week.

Trend momentum signals are flat, supporting the outlook for more range trading in the near term. The USD still appears a bit more vulnerable to a downside move to me, however.

The intraday charts are setting up a possible double top pattern (1.37) which a push under 1.3605 will trigger for a move to the low 1.35 area. Major support (trend and 200-DMA) is still well below here at 1.3465, however.