USD/CAD: Technical momentum is mildly bearish – Scotiabank

USD/CAD edges slightly lower. Economists at Scotiabank analyze the pair’s outlook.

Firm resistance at 1.3510/1.3520 

Risk appetite looks relatively constructive in Asia (ex-Japan) and Europe while US equity futures are narrowly mixed. Crude is trading firmer on the session. These are mild positives for the CAD.

Technical momentum is mildly USD-bearish. 

The pair eased back sharply from Monday’s intraday peak, leaving a negative tone to short-term price signals while shorter-term DMI oscillators are aligned bearishly for the USD. That should mean firm resistance at 1.3510/1.3520 intraday (strong resistance at 1.3600/1.3610 more generally). 

Support is 1.3420.