USD-bearish technical signals noted recently ('engulfing' patterns on the daily and weekly charts and a key reversal week on the 'regular' charts) remain the salient features of USD/CAD’s technical picture, Scotiabank's Chief FX Strategist Shaun Osborne notes.

A lot of residual bull momentum behind the USD

"But there is still a lot of residual bull momentum behind the USD and that may curb the CAD’s ability to recover. Those reversal patterns should mean, however, that the top of the USD is in for this move up—from a technical point of view—at 1.4795. My confidence in this respect is suitably measured, however."

"Technical resistance sits at 1.4250/60, the January range lows, and 1.4465/00. Support remains 1.4095/00 (38.2% Fibonacci retracement of the USD October/January rise) and 1.40."