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

A push back to 1.3290/1.3300 should follow in the next 1-2 weeks

Despite choppy price action since Wednesday, USD/CAD is still heading for a technically weak close on the week – below the 40-DMA (1.3398) retracement support (1.3403) and the noted 1.3540 double top trigger at 1.3415. The weekly candle chart also shows a likely bearish ‘engulfing’ line forming.

A push back to the 1.3290/1.3300 (double top measured move target) should follow in the next 1-2 weeks (or sooner).