USD/CAD: Scope for a further slippage to the 1.2571 support – Scotiabank

USD/CAD has broken under 1.27. Economists at Scotiabank think the pair could plunge as low as the 1.2571 mark.

USD/CAD set to suffer additional losses

“Fundamental drivers suggest some modest scope at least for additional CAD gains in the near-term and should reinforce USD resistance around the 1.28 point.”

“After six solid weeks of USD gains, a fairly firm CAD reversal seems to be developing on the charts, even if it remains very early in the week to draw too many conclusions from the longer run charts. Shorter-term CAD technicals are clearly more positive, however; retracement potential extends to 1.2638 (38.2% Fibonacci retracement of the Oct/Dec USD rise) intraday, with the 50% retracement support at 1.2571 perhaps in reach over the next 24 hours or so.”