USD/CAD may continue to drift sideways in the mid/upper 1.32 area – Scotiabank

CAD holds losses in the upper 1.32 zone ahead of Friday’s data, economists at Scotiabank report.

Two tests of the 1.3275/80 zone leave a potential double top on the intraday chart

With the USD trading mixed to a little softer on the day and neither stocks nor crude oil prices providing much directional leadership, spot may continue to drift sideways in the mid/upper 1.32 area today as markets eye tomorrow’s Canadian data releases (and the long weekend ahead).

There are no clear signs from short-term price action that the market is poised to reverse. Upside risks through to major resistance around 1.3315/25 remain. 

Steep, hourly trend support has been broken, however, and two tests of the 1.3275/80 zone leave a potential double top on the intraday chart. A break under the 1.3240 trigger targets a drop back to 1.3200/05.