USD/CAD tests 1.3400. Economists at Scotiabank analyze the pair’s outlook.

Resistance is 1.3425/1.3450

Losses have made a so far limited break under 1.3415 support – the neckline trigger of the 1.3540 double top that has developed over the past couple of weeks. 

Bearish momentum is developing strongly on the intraday chart but there is little in terms of supporting data from the longer run DMI oscillators at this point. 

A ‘false break’ is a risk but a sustained push under 1.3415 implies downside potential in spot to the high 1.3200s/1.3300 area in the next 1-2 weeks.