USD/CAD: A push to new short-term highs will renew underlying strength – Scotiabank

USD/CAD moves back to the 1.3600 area. Economists at Scotiabank analyze the pair’s outlook.

Support remains 1.3540/1.3550

Spot gains back to the 1.3600 area are putting a little more pressure on last week’s highs and the reversal (‘evening star’ pattern) highlighted on Monday. 

A push to new short-term highs negates the reversal formation and will renew the underlying strength in the USD for a push on to the mid/upper 1.3600s. 

Support remains 1.3540/1.3550.

See – USD/CAD: Loonie to weaken further before a turnaround in H2 – CIBC