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The Canadian dollar continues its journey south, mostly suffering from the strength of the US dollar. This is the highest level since May.

USD/CAD shot above the 1.08 level after breaking earlier above  resistance at 1.0750 and stopping only for a short pause.

The pair reached a high of 1.0813 before cooling and sliding back below 1.08, but the battle is far from over.

Fear has hit  the markets, with both the US dollar and the Japanese yen strengthening before the weekend. The loonie joins the euro, pound and its peer commodity currencies in the fall.

Resistance awaits at 1.0850 while initial support stands at 1.0780 followed by more serious support at the 1.0750 battlefield. For more levels, events and analysis, see the Canadian dollar forecast.

The Bank of Canada is basically clueless about the next direction of monetary policy, despite a heating up of inflation.

Canadian dollar down July 25 2014 technical view 30 minute forex chart USDCAD

— more coming

More: Adam Button lists 5 reasons for the fall of the loonie.

The big event next week is the release of Canadian GDP.