- USD/CAD: Losses may extend to the 1.27/1.28 range in the next three months or so – Scotiabank
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17 July 2023
USD/CAD: Losses may extend to the 1.27/1.28 range in the next three months or so – Scotiabank
The CAD got a lift last week. Shaun Osborne, Chief FX Strategist at Scotiabank, analyzes USD/CAD outlook.
CAD’s grind higher should extend
We continue to forecast 1.30 for USD/CAD at year-end but feel losses may extend to the 1.27/1.28 range in the next three months or so.
New cycle lows and solidly bearish trend momentum indicate ongoing downside risks for the USD and limited scope for counter-trend corrections.
I expect firm resistance to USD gains now at 1.3345/50 (former trend support, now resistance). The USD may even struggle to recover much beyond 1.3200.
Support and near-term downside objective is 1.2990 (50% Fibonacci retracement of the 2021/22 USD rally).
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