USD/CAD: A solid rejection of important technical resistance warrants attention – Scotiabank

CAD drifts a little lower after strong close Friday. Economists at Scotiabank analyze USD/CAD technical outlook.

CAD losses to remain limited ahead of Wednesday’s BoC policy decision

Spot is grinding a little higher on the day but CAD losses are likely to remain limited ahead of Wednesday’s BoC policy decision.

Friday’s session formed a bearish outside range/reversal day, with the peak in the USD developing around important resistance (40-DMA and the 50% retracement of the June decline in funds). A solid rejection of important technical resistance warrants attention. 

Firm resistance stands at 1.3375/85 now. 

Intraday resistance is 1.3325. Key USD support (ahead of renewed losses) is 1.3275.