The Canadian dollar is sliding against the greenback, trading at the lowest levels since early May. Several attempts to break above this line in several hours have resulted in a setback to somewhat lower ground, but the pair hasn’t gone anywhere fast, and it continues to trade in a narrow range.
However, despite the dollar storm that washes the board and despite the weak Canadian jobs data, USD/CAD is unable to break above the very round number of 1.10.
Is the price of oil keeping the loonie bid? No. WTI Crude Oil is trading around $93, off the highs seen in recent weeks. In fact, oil and both gold are weakening as well.
So, it seems it is just a matter of time until USD/CAD makes the break and trips all the stops awaiting above this round number of 1.10.
If this indeed happens, the next levels to watch are 1.1050, which served in both directions. The next line afterwards is 1.1111, which is exactly 0.90 on CAD/USD. 1.1224 is the next line.
On the downside, we have 1.0940 and 1.0850. For more, see the USDCAD forecast.
Here is the recent chart of USD/CAD:
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