USD/CAD: The 1.32 area is set to continue capping the topside – Scotiabank

USD/CAD holds range. As analysts at Scotiabank note, technicals suggest USD gains have stalled around 1.32.

Loonie remains hitched to the risk on/off tone

“USD/CAD has established a well-defined trading range between support at 1.3150 and resistance at 1.3195/00 over the past couple of sessions.  The CAD remains hitched to the risk on/off tone and the broader moves in the USD for now but we continue to expect USD supply to emerge at or near the recent range extremes, keeping spot broadly range bound.”

“We look for the 1.32 area to continue capping the topside.”