USD/CAD retains a soft technical undertone. Economists at Scotiabank target low 1.27s.

USD gains through the low 1.28s are liable to draw out firm selling pressure

“We are focusing on the potential for the USD to slide back to the low 1.27 zone (1.2715 as the early May low and 1.2740 as the next Fibonacci retracement support) as a short-term objective. Below here and losses can be expected to extend to the 1.25/1.26 zone in the next few weeks, given the strength of the USD turn lower from the recent peaks.”

“We look for USD losses to pick up some momentum below short-term support at 1.2765.” 

“We think minor USD gains through the low 1.28s are liable to draw out firm selling pressure.”