Economists at Scotiabank see limited scope for the loonie to rebound in the short run and ongoing upside risk for USD/CAD towards 1.3350.

CAD prone to more weakness

“A strong weekly close for the USD plus bullishly-aligned trend strength oscillators – DMI – on the intraday, daily and weekly charts suggest ongoing upside risks for the USD in the week ahead and limited potential for counter-trend USD corrections.”

“We look for USD dips to remain well supported on weakness to the low/mid-1.32s now.”

“We spot resistance – and the likely bogey for a bullish-USD response to developments next week – at 1.3350. Above there, we spot resistance at 1.3420 and 1.3650.”