USD/CAD remains largely rangebound in the upper 1.32 zone. Economists at Scotiabank analyze the pair’s outlook.

Range trading may extend a little in the very short run

USD/CAD rebounded firmly from a test of the 1.3250 zone after breaking minor trend support – which should figure as initial intraday resistance at least now – at 1.3285.

Short-term trend momentum is flat, suggesting range trading may extend a little in the very short run. But last Friday’s surge in the CAD remains the salient feature of the daily chart (USD-bearish outside range rejection of major resistance in the upper 1.33s) and tilts broader USD/CAD risks to the downside and a retest of the 1.3150/1.32 area at least.