USD/CAD: Break below 1.2650 to clear the path towards 1.2570 – Scotiabank

The loonie recovers ground after strong close Monday sets up a test of the 1.2650 mark, economists at Scotiabank report.

Resistance intraday now seen around 1.2700/15

“The low close on the day for the USD/CAD Monday formed a bearish ‘engulfing line’ on the daily chart; additional losses today will ‘confirm’ the reversal and put a little more pressure on the mid-1.26 support zone.” 

“We expect resistance intraday now around 1.2700/15.”

“A break under 1.2650 targets 1.2570.”