USD/CAD: Support looks firm near 1.3340/50 – Scotiabank

The loonie withstands US dollar volatility to an extent. However, the USD/CAD pair has solid support at the 1.3340/50 region, economists at Scotiabank report.

Broader risks still point towards additional USD gains

“Intraday patterns suggest USD gains have stalled in the upper 1.33 area, with the CAD proving (surprisingly) resilient to the volatility which affected the other majors earlier in the session.” 

“USD support looks firm near 1.3340/50 (former resistance), however, and the CAD will need to regain 1.3225 (at least) to show any sort of technical strength in the short run.”

“Broader risks are still pointing towards additional USD gains (1.3651 is the 61.8% Fib of the 2020/21 USD decline).”