USD/CAD: Technical risks tilted slightly to the downside – Scotiabank

USD/CAD holds range. Economists at Scotiabank note that the technical picture shows that the risks are tilted slightly to the downside.

Auguring a period of more dynamic movement shortly

“USD/CAD has settled into a flat range trade over the past couple of weeks but the narrowing parameters of the range are producing a triangular type pattern on the intraday chart that augurs for a break out (one way or the other) and – perhaps – a period of more dynamic movement shortly.” 

“Resistance is 1.3780, support is 1.3685.”

“Broader patterns – the early March peak/reversal above 1.38 and the USD’s longer run overbought condition – tilt technical risks (slightly) to the downside.”