USD/CAD is trading near its daily low, around the 1.2720 region. Still, economists at Scotiabank believe that the pair should trend higher in the short-term.

CAD needs to crack 1.2645 to improve technically

“We spot USD/CAD resistance at 1.2815 but there is little obvious, additional resistance above there until the 1.2900/50 range.”

“Support is 1.2715 and 1.2645/50 (formerly the bearish breakdown point for what now looks to be an invalidated H&S top).”

“We look for the USD to remain better supported in the short run; the CAD needs to crack 1.2645 to improve technically.”