USD/CAD: Ongoing pressure higher towards a retest of the 1.37 area – Scotiabank

USD/CAD gains through 1.35 points to a test of 1.37, Shaun Osborne, Chief FX Strategist at Scotiabank, reports.

Gains through 1.37 cannot be excluded

“USD/CAD strength may persist a little longer now; not only has the pair traded through key resistance but trend strength (DMI) oscillators have aligned bullishly for the USD across intraday, daily and weekly studies. This should mean firm support for the USD on modest dips from here and ongoing pressure higher towards a retest of the 1.37 area, where USD gains stalled late last year.”

“Initial support is likely to emerge in the mid-1.35 zone but the support zone likely runs fairly deep (back to the 1.35 area).” 

“Gains through 1.37 – which cannot be excluded, given the bullish alignment of trend strength oscillators – would suggest USD gains can extend a little more to retest the 1.38 zone.”