Scotiabank Scotiabank analysts Shaun Osborne and Eric Theoret note that the Canadian dollar is slightly weaker but remains above 1.37, with USDCAD tracking broader dollar moves. Their estimated fair value increased to 1.3625, reflecting less favorable factors for CAD. Technically, they see broad consolidation with forceful resistance at the upper 1.36 and a potential bearish triangle between 1.3695/00 and 1.3525.
Resistance continues as fair value increases
“CAD is marginally lower in overnight trading but remains well above yesterday’s intraday low against USD near 1.37.”
“Our fair value estimate for USDCAD increased to 1.3625 this morning, extending the moderately less favorable (for CAD) change in spot factors seen last week.”
“As expected, yesterday’s dollar rally to the high of 1.36 was repelled by strong long-term technical resistance (previous trend support).”
“The US dollar gave up all of its intraday gains yesterday and closed unchanged, marking a bearish tombstone on the daily chart that should reinforce resistance at the upper 1.36 level.”
“The price action may be to form a broad triangle (bearish consolidation), capped but by resistance at 1.3695/00, with the base currently at 1.3525.”
(This article was created with the assist of an artificial intelligence tool and has been reviewed by an editor.)
