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The C$ dipped to the lowest level against the greenback since January 30th. After breaking above parity, USD/CAD crossed a significant resistance line, and isn’t backing down so far.

The reason is the turmoil in Greece, which is now officially headed towards another round of elections and is nearing an exit from the euro. The next resistance for USD/CAD isn’t close.

USD/CAD 3 month high May 15 2012
USD/CAD 3 month high - Click to enlarge

The Canadian dollar managed to hold on quite well in the recent dollar storm, especially among the commodity currencies. NZD/USD collapsed in recent weeks, and the Aussie followed with AUD/USD losing parity.

The loonie held well, thanks to a strong employment report, reliance on US demand which remains strong and relatively high oil prices.

Together with Greece, also oil prices are retreating, and so is the Canadian dollar.

USD/CAD crossed the 1.0050 line that capped it 3 times since January. At 1.0067, the break doesn’t seem impressive, but it’s important to remember that this pair moves slowly.

The next resistance line is far: 1.0143, followed by a stronger cap at 1.02. For more, see the Canadian dollar forecast.