USD/CAD should find support on dips to the low/mid-1.3400s – Scotiabank

The Canadian Dollar (CAD) edges slightly higher but scope for gains looks limited, economists at Scotiabank report.  

Uptrend in place since the start of the year remains intact

USD/CAD has drifted from the high around 1.3540 seen earlier in the week but losses are relatively mild and the broader uptrend in the USD in place since the start of the year remains intact. 

Shorter-term trend oscillators are leaning USD-bullish still. 

Spot may edge a little lower in the short run as price action corrects from the test of the 50% Fibonacci resistance from the USD’s Q4 drop (1.3538) but the USD should find support on dips to the low/mid-1.3400s absent any sign of a reversal in the USD bull trend at this point.