FX Strategists at Scotiabank remain bearish on the pair in the near term horizon.
“There is little arguing with the price action in USDCAD over the past two weeks; the early May key reversal day correctly called the technical top in the market from the 1.3793 level and the break under support at 1.3650 has allowed the USD to ease back to levels that we anticipated might follow”.
“While short-term trend momentum remains bearish, we think the USD is close to levels that are starting to look technically attractive again as the low/mid 1.34 area represents an effective retest of the bullish break out seen in late April. We see support around 1.3440 intraday. Resistance is 1.3510”.