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USD/CAD comfortable under 1.31 – heading to 1.30?

The Canadian dollar continues marching forward, taking advantage of whatever it can. UDS/CAD is getting comfortable under 1.31 with the low so far standing at 1.3076.

The initial boost to the C$ came from the Bank of Canada, initially from Wilkins, which switched its stance to hawkish. A stronger economy gave rise to optimism. USD/CAD fell sharply below support at 1.3380 and never looked back.

Some unconvincing Canadian inflation figures weighed but this did change the overall trend. Other figures such as retail sales and jobs data continue supporting the Canadian dollar.

The most recent fall is driven by two factors:

USD/CAD lower levels

Support awaits the pair at the March low 1.3050, and the pair is getting close. Further support is at the round level of 1.30, which is a big psychological barrier.

Further below, we find 1.2980, a low seen in February. It is followed by strong support but only at 1.2830.

Here is the Dollar/CAD daily chart that shows the downtrend.

Bank of Canada Stephen Poloz will be speaking at the Sintra Forum, alongside his predecessor Mark Carney, the current Governor of the BOE. Crude Oil Inventories are released soon.

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.