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.
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And here is the Dollar/CAD chart:
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