Scotiabank Forecasts CAD to Hit 1.35 Against USD

Scotiabank's foreign exchange strategists believe there is a bullish structure for the Canadian dollar (CAD) against the US dollar (USD), which could lead to it reaching the 1.35 handle in the near term.

This assessment is based on the pair's failure to sustain upward momentum and the formation of lower highs on the daily chart, indicating that sellers are in control.

As long as USD/CAD remains below the 1.3650-1.3700 zone, the path of least resistance is lower, with the 1.35 area acting as the next major support level.