USD/CAD could rebound unless a break below the low 1.33 zone materialezes soon – Scotiabank

Economists at Scotiabank analyze USD/CAD technical outlook.

Runs of successive daily losses rarely run deep into double digits

The technical backdrop is solidly USD-bearish, spot is trading below all major short, medium and long-term MA signals and trend momentum is bearish across intraday, daily and weekly DMI studies. That is usually a pretty strong signal for losses to extend. But spot is getting caught up by this band of support in the low 1.33 zone and the (near-term) risk is growing that unless we see a break lower soon, the USD could rebound. 

Runs of successive daily losses (or gains, for that matter) in spot rarely run deep into double digits.