USD/CAD is trading higher for the first time this week. However, economists at Scotiabank expect the pair to continue moving lower as technicals suggest further downside pressure.

Gains on the day may already have peaked around 1.3565

“Steady losses in the USD since Monday, a break under the 40-Day Moving Average (1.3592 – now important resistance) and a bearish tilt in the intraday and daily trend intensity oscillators keep the focus on the downside for USD/CAD in the short run.”

“Modest USD gains on the day may already have peaked around 1.3565.”

“USD losses through the low 1.35s (100-DMA at 1.3519) target a test of long-term trend support at 1.3410/15.”