USD/CAD drops marginally. Economists at Scotiabank analyze the pair’s outlook.

Resistance at 1.3480/1.3500 is firming up

Short-term price action is leaning USD-negative on the intraday chart following Tuesday’s slide back in funds from the upper 1.3400 area. Softness through 1.3450/1.3460 may extend to retest the low 1.3400 area again later today.

On the daily chart, the USD’s failure to hold gains through the upper 1.3400s is starting to look a little more significant, with spot losses compromising trend support of the late December low.