USD/CAD: technical update
USD/CAD has managed to recover after hitting 1.0260 on Monday. However, loonie found resistance at 1.0365 (top of Ichimoku Cloud at H4). Canadian currency will be able to retest May highs only if it breaks above 1.0265/70.
Support lies at $1.0325 (23.6% Fibo of the May advance, 200-month MA), 1.0300, 1.0285 and 1.0260.
In the longer term the outlook will remain bullish as long as USD/CAD is trading above 1.0100.
USD/CAD is volatile and data-driven this week. Canada reported yesterday its 16th trade deficit in a row, so Canadian currency dropped and USD/CAD rose. The day before yesterday CAD made its biggest gain in almost a year as a manufacturing slowdown in the US damped speculation the Fed will reduce stimulus that tends to devalue USD. Friday will be a very important day for the pair: both the US and Canada will release employment figures.
Chart. H4 USD/CAD