USD/CAD holds around 1.32. Economists at Scotiabank analyze the pair’s technical outlook.

Scope for significant gains from the low 1.33 zone looks very limited on the charts

The USD is looking a little oversold from a technical perspective so some back and filling of recent losses would not surprise in the short run. 

Gains through 1.3225/30 in the next day or so would give the USD a little more short-term support. There will be firm resistance on gains towards the low 1.33 zone, however, and scope for significant USD gains from here looks very limited on the charts. 

The broader technical picture points to a USD decline towards the upper 1.29s after losing major support in the low 1.33s.