USD/CAD holds little changed on the day after negative close Friday. Economists at Scotiabank note that the pair needs to drop below 1.2890 to develop more downside momentum.

A top may be developing

“The USD closed well off the week’s high last week and the pattern on the weekly chart suggests a top may be developing (via a weekly ‘shooting star’ signal).”

“Intraday chart patterns are supportive of a top developing for the USD but spot needs to crack 1.2890 today/tomorrow to develop more downside momentum. That could put funds on track for a test of the low/mid-1.27s.”