USD/CAD: Break below critical support at 1.3075 to open up downside potential – Scotiabank

USD/CAD is overbought but holds range. Economists at Scotiabank note that the pair could suffer significant losses on a break under key support at 1.3075.

Ongoing downside pressure towards 1.31

“The USD is holding its established, short-term range but by recent standards, it is looking overbought.” 

“The charts suggest ongoing downside pressure towards 1.31 in the short run; key support is 1.3075, the early Sep low and 1.3210 double top trigger (downside potential to 1.2940 on a break under the neckline).”