The CAD really needs to pick up a bit more ground to have a chance of improving – Scotiabank

CAD nudges higher. Shaun Osborne, Chief FX Strategist at Scotiabank, analyzes Loonie’s outlook.

Intraday patterns lean mildly USD-negative

In general terms, the CAD still looks relatively ‘cheap’ to me at the lower end of its recent trading range against the USD but the risk backdrop is likely to keep it trading defensively in the short run at least.

The USD’s drop back from the intraday high Thursday to end the session unchanged formed a bearish ‘doji’ candle on the daily chart but USD losses have been mild and the CAD really needs to pick up a bit more ground today to have a chance of improving.

Intraday patterns lean mildly USD-negative but the USD remains above short-term support (1.3635) which could unlock a little more CAD strength.

Resistance is 1.3725/1.3735.