USD/CAD to test the 1.33 zone on a break under 1.3395 – Scotiabank

Loonie eases off Tuesday’s high. Economists at Scotiabank analyze USD/CAD outlook.

Rebound through 1.3495/1.3500 will drive a deeper rally towards the upper 1.35s

Spot rebounded from support at 1.3395 on Tuesday but gains have not extended too far and the USD is holding below resistance at 1.3495 – minor trend support-turned-resistance and the 40-DMA. These two points on the short-term chart will likely direct spot towards its next ~ 100 bps move. 

A break under 1.3395 should see spot test the 1.33 zone. 

A rebound through 1.3495/1.3500 will drive a deeper rebound towards the upper 1.35s.