USD/CAD: PRICE PATTERNS POINT TO LOSSES EXTENDING TO THE 1.2730/35 ZONE – SCOTIABANK

The USD/CAD finally cracked retracement support at 1.2865 to edge back to the low 1.28s. Economists at Scotiabank expect the pair to extend its decline towards the 1.2730 mark.

USD/CAD CAN PUSH ON TO THE LOW/MID 1.27S

“Short-term trends suggest building bearish momentum behind the USD’s decline and price patterns point to USD losses extending to the 1.2730/35 zone after spot rejected the 1.3075 area again earlier this month.”

“We spot interim support at 1.2795/00 ahead of 1.2730 (61.8% retracement of the June rally in the USD).”

“Look to fade minor USD gains to the upper 1.28s.”