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USD/CAD at new 5 year high as oil prices dig

USD/CAD is trading at 1.1388, just above the  October  high of 1.1384, with the main driver being yet another drop in oil prices. WTI Crude Oil is trading at $76.50, a drop of 2.8%,    and Brent is also on the slide, around $82.59 at the time of writing.

The round number of 1.14 looms, but basically we are at  levels last seen in July 2009. That’s 64 months.

This specific breakout is a Canadian dollar story: the US dollar is actually somewhat softer against other currencies such as the euro, yen and pound, correcting some of the  big gains it had, especially against the yen.

Canadian trade balance is next and it’s published alongside US trade balance. Canada is expected to report a deficit of 0.7 billion C$ in September after 0.6 billion in August. The US has a deficit of 40 billion. Note that revisions are usually made to previous data.

Above 1.14, we have 1.1470 as resistance, towards the round number of 115. Further above, strong resistance appears only at 1.17, which is not only a round number but also served as both support and resistance around the financial crisis.

More CAD:

And here is the Dollar/CAD chart:

Canadian dollar at lowest since 2009 against the US dollar November 4 2014

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.