USD/CAD: More sideways trading between 1.3125/1.3225 for now – Scotiabank

USD/CAD is trading in a tight range just under 1.32. Economists at Scotiabank analyze the pair’s outlook.

Technical momentum remains bearishly oriented for the USD

A lower close for the USD on the session on Tuesday may be tilting the short-term technical pointers back in the CAD’s favour – slightly. Stalling USD gains through the low 1.32 zone underscore the limited USD advance after Friday’s sharp rally. 

Technical momentum remains bearishly oriented for the USD and is making additional progress hard to come by. It remains to be seen if the CAD can strengthen against the USD though; more likely perhaps is a bit more sideways trading between 1.3125/1.3225 for now.