The USD/CAD pair is refreshing five-week lows around mid-1.2400s. Technical signals suggest the downtrend has further to run while the fundamental outlook aligns, as reported by Standard Chartered.
Near-term conviction is for a weaker USD/CAD
“Leveraging US economic growth, an expansive Canadian budget and an increasingly hawkish BoC are CAD-positives.”
“Exiting current lockdowns and improving nationwide vaccination rates should be the next catalysts for the pair.”
“We expect a challenge and a likely break of the March low at 1.2360 and a decline towards the 2017-2018 lows at 1.2060.”
“Resistance is at 1.2650-1.2750.”
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