Search ForexCrunch

The Canadian dollar got a boost from oil prices: this helped the loonie gain against the greenback, with USD/CAD falling below 1.16. The balanced rate statement from the Fed even sent the pair lower. There were quite a few reasons to see the pair as topping out, and now we have a double top, that may or may not stay intact.

However, the strength of the C$ did not persist when  US Fed Chair Janet Yellen began talking.

Yellen basically said that rates will rise in 2015, erasing doubts. She did say rates will not rise in the next “couple of meetings” and some markets see it as a hint for a hike in April. Her view on employment was positive and her view on oil prices was a “net positive”. She sees lower inflation as transitory.

This sent the Canadian dollar back down against the greenback and an interesting pattern on the chart: a double top in USD/CAD at 1.6670.

Above 1.1670 we have the round number of 1.17 and later it’s levels  last seen in 2009. On the downside we can point out the round 1.16 level.

More:  CAD: Loonie Taking Notes From Nokkie; What’s Next? – CIBC

Here is how it looks on the  Dollar/CAD hourly chart:

USDCAD forms a double top on the graph as the Fed is hawkish and prices of crude rebound