The Canadian Dollar trades weaker as external factors pull USD/CAD to test major technical resistance, economists at Scotiabank report. 

Short-term price trends are clearly USD-bullish

A generally firm USD, rising US bond yields and weak equities are a perfect short-term storm for the CAD which finds itself under a little more pressure.

The USD has experienced a vertical take-off since testing the 1.3150 area Monday. But spot gains have reached what should be firm resistance in the upper 1.33 zone – former trend support from Nov last year which underpinned the USD range until the June rally in the CAD. This is where the USD rebound stopped in early July and it should be stiff resistance to a further USD advance here.