USD/CAD to surge towards the 1.2900/50 area on a break above 1.2815 – Scotiabank

USD/CAD is poised to close out the week on a firm note nearing 1.28. A break above the 1.2815 would clear the way towards the 1.2950 region, economists at Scotiabank report. 

Minor support for the loonie from crude

“Firm commodity prices – with crude heading for a sixth weekly gain – are providing a modest prop for the CAD but near term risks are tilting a bit lower for the currency amid soft risk appetite and a long wait for the March BoC decision.”

“The short-term uptrend has gathered a little more bullish momentum over the past session or two and the USD is within reach of minor resistance at 1.2815 (minor high from January). There is little resistance above there until the 1.2900/50 zone, however – the range highs for spot over the past year.”

“Intraday support is 1.2710/15.”