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Canadian dollar dips to 3 year low against the USD

The downfall of the Canadian dollar continues. Against the US dollar, the loonie is now trading at levels last seen in September 2010.

USD/CAD rose above the peak of 1.0658 recorded in October 2011 and reached a high of 1.0663. At the time of writing, the move lacks conviction and the pair retreated back under 1.0650.

Here is the long term daily chart which shows the support and resistance lines:

Canadian dollar 3 year low December 3 2013 forex trading currencies grpah for loonie traders

More peaks are close by: the pair made three sharp moves in 2010, all peaking between 1.0660 and 1.0675. The latter level was seen in June 2010. Even higher levels, of over 1.07 were last seen in May 2010.

Serious resistance above this area appears at 1.0780, which was a peak in February 2010 and a bottom back in in May-June 2009. Even higher resistance is the peak of 1.0850 seen in May 2010 and in October 2009. Above 1.0850, the round 1.10 line worked as resistance in 2009.

Below, the pair has support at 1.01.0610, followed by 1.0565.  For more, see the Canadian dollar forecast.

The Canadian dollar has been on the back foot due to several reasons: the drop of commodity currencies such as the Aussie and the kiwi, the not so impressing demand from the US, and the cheap prices it receives for its oil.

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.