USD/CAD to give up a little more ground to low/mid-1.34s on weakness below 1.3490 – Scotiabank

Loonie is underperforming but that essentially means no movement in USD/CAD around the 1.35 level. Shaun Osborne, Chief FX Strategist at Scotiabank, analyzes the pair’s outlook.

USD/CAD remains in consolidation mode

Technically, USD/CAD remains in consolidation mode; gains extended a little more than I had expected on Wednesday but price action still appears to be consolidating (bear wedge/flag pattern) after the mid-September slide in the USD.

Weakness below short-term support at 1.3490 should see the USD give up a little more ground to low/mid-1.34s.

Resistance is 1.3540/1.3550.