CAD: The Canadian Dollar has extended its bearish reversal with USDCAD hitting the top of its recent consolidation range. Clean break of 1.3160 leaves room for a test of 1.32. Wider yield spreads between the US and Canada has been among the factors behind the bid in USDCAD with US/CA 10yr bond spreads widening to -60bps from July lows of -48bps.
USD/CAD RE-TESTING RESISTANCE AT MONTHLY HIGHS
Driven by that theme of strength in the US Dollar, USD/CAD has risen to a fresh monthly high. I had looked at the pair for bullish reversal potential coming into this week. USD/CAD had started to test above a falling wedge formation, and sellers seemed disinterested in testing the 1.3000 psychological level. Above current price action, the 1.3200 level remains of interest; and if that USD drive can continue into next week’s rate decision, USD/CAD offers resistance/target potential around prior support of 1.3250-1.3300.
USD/CAD RE-TESTING RESISTANCE AT MONTHLY HIGHS
Driven by that theme of strength in the US Dollar, USD/CAD has risen to a fresh monthly high. I had looked at the pair for bullish reversal potential coming into this week. USD/CAD had started to test above a falling wedge formation, and sellers seemed disinterested in testing the 1.3000 psychological level. Above current price action, the 1.3200 level remains of interest; and if that USD drive can continue into next week’s rate decision, USD/CAD offers resistance/target potential around prior support of 1.3250-1.3300.
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