USD/CAD: Upside potential is limited, gains may not exceed key resistance at 1.3315/25 – Scotiabank

Market news

3 July 2023

USD/CAD: Upside potential is limited, gains may not exceed key resistance at 1.3315/25 – Scotiabank

CAD lost ground against a generally stronger USD last week but losses were duly limited to around 0.4% on the week, a little worse than most of its G10 peers. Economists at Scotiabank analyze USD/CAD outlook.

CAD downside limited

Fundamental risks appear neutral to mildly positive for the CAD.

Our week-ahead model anticipates a 1.3170/1.3430 range for USD/CAD.

Technical pointers correctly highlighted upside risks for the USD last week but signals are now more nuanced in terms of guidance for the week ahead. Trends still rather suggest to me that upside potential in the USD is limited and gains may not exceed key resistance at 1.3315/25. An overshoot, given positive weekly price action, is hard to rule out, however.

Support is 1.3200/10, with USD losses below here liable to extend back to 1.3150/75 quickly.

Currencies. Daily history for Monday, July 3, 2023

Commodities. Daily history for Friday, June 30, 2023

Market Focus

Material posted here is solely for information purposes and reliance on this may lead to losses. Past performances are not a reliable indicator of future results. Please read our full disclaimer

Open Demo Account & Personal Page

Personal area

support@teletradepartners.com

Risk Warning: Trading in the financial markets (including trading on margin) provides a wide range of opportunities and enables investors ready to take risks to make high profits, but it carries a potentially high level of risk of loss. Therefore, prior to trading you should take into careful consideration whether such operations are suitable for you in terms of your level of knowledge and financial situation.