USD/CAD once again failed to close above 1.28 during Tuesday’s session after two separate moves above the figure. Economists at Scotiabank believe the pair could decline toward the 1.26 level.

Initial support awaits at 1.2730/20 

“While the broader technical trend suggests further USD gains, a failure to break past the 1.28 level points to a possible reversal toward the 1.26 mark, near the 100-day MA of 1.2574.”

“From a shorter-run perspective, support is relatively firm in the 1.2720/30 zone that has marked the bottom for the week, to be followed by the figure.”

“After the 1.28 area, Tuesday’s peak of 1.2837 marks resistance followed by the mid-figure zone.”