The CAD edged fractionally higher to the 1.2865/70 area before ceding gains and trading back to near flat on the session. This movement indicates that the loonie lacks positive momentum, in the view of analysts at Scotiabank

Break under 1.2865 to tip funds back to the low/mid 1.27s

“Spot’s soft-ish close on the week through last Friday puts a tentative top on the USD rally after spot’s rejection of the upper 1.30s in the prior week. But the fact that support around 1.2865 continues to hold the market up suggests very limited, positive momentum behind the CAD at this point.”

“A break under 1.2865 should tip funds back to the low/mid 1.27s.”

“Intraday, we spot resistance at 1.2935/45.”

See – USD/CAD: Break below 1.2864/58 to prompt further weakness – Credit Suisse