By: Colin Jessup
With the housing data and FOMC details coming out of the USA this week, the US economy could be put on hold more or less until these statistics come out. The Canadian dollar, or Loonie as us Canucks call it, seems to have taken advantage of the situation and gained some serious ground on its southern cousin, the Greenback. The USD/CAD fell as low as 0.9778 on Friday and is currently trading right under a resistance zone of 0.9835...we could possibly see price reverse from this level and target the low again. Last weeks candle was a 250 pip bearish engulfing candle ranging from the high of 1.00261 to the low where it closed, at 0.97784. We have support/resistance zones at 0.9869, 0.9802 and 0.9740, and if we fall below 0.9740 we may also see 0.9684 as this is the next major daily support zone. We will have to break above 0.9869 before the bulls, and in turn the Greenback, take back control. On the other hand, if we fall below 0.9725 there is a technical vacuum down to around 0.9584. The Canadian economy is slightly more stable than the US economy of late so I would be surprised if we see parity again any-time soon...but stranger things have happened!
Happy Trading!
