The CAD’s failure to make more impression on the 1.34 area has prompted some drift off this week’s peaks on a generally soft USD. Economists at Scotiabank expect the USD/CAD to enjoy minor gains.

USD trend support holds 

“Minor gains in the USD from the low 1.34 area may have a little further to go.” 

“The USD’s positive reaction to the test of nearly year-long trend support in the low 1.34 area reflects the fact that trend dynamics are leaning USD-bearish but are not as well-established as some other currencies.” 

“Resistance is 1.3490/00, with 1.3525 (100-Day Moving Average) firmer resistance above the figure.”