How sweet was that 1.30 level yesterday?
The loonie went all around the houses yesterday over the BOC and it's not stopped going higher all day today.
1.3200 has often been a pivot point and so it is again. In this last move we're seeing it trying to hold above 1.32 and if it's successful then there's more upside to come.
USDCAD 15m chart
Prior visits above 1.32 have found things hard going around 1.3235/40 and 1.3275 so look for those levels to act up again. Should those get taken then we could have a good shorting opportunity if we get to 1.33 and the Oct highs.
USDCAD daily chart
Failure to stay above 1.32 would be a worry and the main intraday support around 1.3140 would be key to seeing the rally stay in tact. If not, we'll be heading for a test of 1.3100.
The support down towards the 1.30 area was magnificent so it's a shame my long order at 1.3005 went unfilled, as that was the low of the day and I missed by the broker spread. That said, I had taken a small long at the 100 dma and took 70 odd pips in the jump so I can't complain. I hope you grabbed some too.
As I mentioned earlier, the US dollar is gaining in strength as the Fed comes to the fore, not that it was far away anyway. Just be aware that we're still not breaking out of any of the main ranges. If USDJPY fails at 104 again, be prepared to see the buck pare back some gains on profit taking.
