USD/CAD falls towards 1.28 as crude continues to inch higher. In the view of economists at Scotiabank, it will take a break below 1.2760 – last week’s low – to drive the pair more convincingly lower from a chart perspective.

Resistance is seen at the 1.2840/50 zone

“The writing – in the form of the bearish, daily RSI divergence and the solid resistance above 1.29 in place all year – had been on the wall for the USD’s push higher so we are not too surprised to see USD/CAD weaken. But we need to see a break under 1.2760 in the next day in order to see losses extend towards 1.2600/10.”

“Resistance is 1.2840/50.”