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Canadian Dollar Closer to Year Lows Against US Dollar

The Canadian dollar isn’t strong enough to weather another US dollar storm. The better-then-expected New Home Sales in the US were a trigger for a stronger dollar across the board.

USD/CAD shot above resistance and is now close to the highest levels in the year, recorded in January. The weaker than expected core retail sales and falling oil prices also weigh on the loonie. Update.

Canadian Dollar Approaching YTD Lows Against USD May 23 2012
USD/CAD Approaching YTD Highs - Click image to enalrge

USD/CAD is currently trading at 1.0284, after shooting above the 1.0263 line. It rose as high as 1.0296, only 4 pips short of the 1.03 line, which is of high importance.

The year-to-date high of the pair was 1.0319, seen in early January. It’s getting closer now. For more lines, see the Canadian dollar forecast.

The greenback already got back wind from fresh fears for a Grexit. The former Greek Prime Minister Lucas Papademos ignited the fall by saying that he think contingency plans for a Greek exit of the euro are in the works.

After some consolidation, the move resumed at 14:00 GMT with the release of the the better-than-expected US New Home Sales. They weren’t a big surprise – just supplied the trigger that sent the euro to 22 month lows.

WTI Crude Oil is now falling toward $90 after struggling around $91 earlier. $90 isn’t only a psychological barrier, but also served as resistance during September 2011, for quite a few days in a row.

The Canadian dollar also suffers from a plunge in the price of oil. For more on oil and gold, see Trading NRG.

Yohay Elam

Yohay Elam

Yohay Elam: Founder, Writer and Editor I have been into forex trading for over 5 years, and I share the experience that I have and the knowledge that I've accumulated. After taking a short course about forex. Like many forex traders, I've earned a significant share of my knowledge the hard way. Macroeconomics, the impact of news on the ever-moving currency markets and trading psychology have always fascinated me. Before founding Forex Crunch, I've worked as a programmer in various hi-tech companies. I have a B. Sc. in Computer Science from Ben Gurion University. Given this background, forex software has a relatively bigger share in the posts.