USD/CAD: Scope for Loonie losses looks limited – Scotiabank

USD/CAD is firmer on the day. Shaun Osborne, Chief FX Strategist at Scotiabank, analyzes the pair’s outlook.

Support aligns at 1.3160

The CAD is doing is usual thing of underperforming in line with the general USD trend but I still rather think scope for CAD losses is limited at the moment. 

Price action is still essentially consolidating and the bearish wedge pattern in development since mid-July tilts broader technical risks to the downside still. 

Short-term charts still highlight firm resistance in the 1.3200/25 zone, with major resistance at 1.3325/50 above there. 

Support – bear breakdown trigger – is 1.3160.