USD/CAD: Break below 1.3570 to pave the way for a test of the low 1.35 region – Scotiabank

The CAD is trading at its highest against the USD since the early part of March. Economists at Scotiabank expect the USD/CAD pair to challenge the low 1.35s on a move under the 1.3570 support.

Resistance aligns at 1.3650/60

“USD/CAD losses through the low/mid 1.36s confer a softer technical tone on the short-term charts but the Loonie has a lot of work to do still to show any real technical strength.” 

“A move under 1.3570 (50% retracement of the Feb/Mar USD rise) would pave the way for a test of the low 1.35 region where the 100-Day Moving Average (which has been a good bellwether for USD/CAD recently) stands at 1.3517.”

“Resistance is 1.3650/60.”