USD/CAD: A low close today should see as softer USD tone follow – Scotiabank

USD/CAD holds little changed around 1.35. But the pair’s price action looks positive for the Loonie, economists at Scotiabank report.

Firm resistance seen at 1.3520/25

“Trading volumes might be light but yesterday’s USD gains peaked and stalled fight around the 55-DMA via a ‘doji’ candle on the daily chart, implying a stall and (possibly) reversal in recent USD gains.” 

“Intraday price action adds to the soft look, with the USD easing below the base of the rising channel (bear flag) that has supported USD gains off the Mar 4 low just above 1.34. A low close today should see as softer USD tone follow.”

“USD/CAD resistance is firm at 1.3520/25.”