USD/CAD to retest 1.3440/1.3450 on a move below support at 1.3540/1.3550 – Scotiabank

USD/CAD is little changed on the session so far. Economists at Scotiabank analyze the pair’s outlook.

Risks tilted mildly to the downside

A lower close to the USD on Friday tilts risks mildly to the downside for funds from a technical point of view. 

At the very least, spot is looking at pretty solid resistance at 1.3600/1.3605 after clear rejections of the figure area last week. 

The USD’s mild drop Friday also formed the third leg of a bearish ‘evening star’ pattern on the daily candle chart which should see spot put a bit more pressure on moderate support at 1.3540/1.3550 in the short run and, below there, point to a test of 1.3440/1.3450.