The USD/CAD finally cracked retracement support at 1.2865 to edge back to the low 1.28s. Economists at Scotiabank expect the pair to extend its decline towards the 1.2730 mark.

USD/CAD can push on to the low/mid 1.27s

“Short-term trends suggest building bearish momentum behind the USD’s decline and price patterns point to USD losses extending to the 1.2730/35 zone after spot rejected the 1.3075 area again earlier this month.”

“We spot interim support at 1.2795/00 ahead of 1.2730 (61.8% retracement of the June rally in the USD).”

“Look to fade minor USD gains to the upper 1.28s.”