USD/CAD dawdled back to the mid 1.27 zone at the end of last week, extending its run of weekly closes very close to the 1.2750 area that has been a feature of this pair since late January. Economists at Scotiabank note that USD/CAD could suffer substantial losses on a drop below 1.2695.

Firm resistance located around 1.2795/00

“The broader, neutral range persists despite a fair degree of chop around that point but the USD continues to attract fairly solid selling interest on rallies and we continue to see a bit more downside than upside risk to this market in the months ahead.”

“Intraday, we expect firm resistance around 1.2795/00.”

“Key support is 1.2695 and we would look for the pair to fall more materially below this point.”