USD/CAD started the new week with a soft undertone and retested the mid-Jan low at just under 1.3350. A break below here would open up further losses, economists at Scotiabank report.

Near-term risks tilted to the downside

“Late week USD losses last week tilt near-term risks to the downside somewhat and do suggest firm resistance above the market in the short run at least around the 1.35 zone.”

“A clear and sustained break of 1.3350 intraday should see spot (finally) reach the upper 1.32s.”