USD/CAD pivots around 1.33 after failing to hold break under the figure. Economists at Scotiabank analyze the pair’s technical outlook.

Directional risks tilted to the downside

The snap higher in the USD back through the 1.3320/30 area from yesterday’s intraday low will undermine the USD/CAD bear trend. The technical jury is still out on that, however, with the USD rebound faltering in the mid-1.33 zone and running into steady selling pressure on minor gains. 

Bearish trend momentum remains quite intense, preventing a stronger USD recovery at this point and keeping directional risks tilted to the downside. 

The USD needs to regain (and hold) 1.3395/00 to stabilize.