The USD/CAD. otherwise known as the good old 'Loonie' to us Canuck's has pierced a descending trend-line at 0.9932 2 days in a row with yesterday's low volume market printing a Bullish Inside Bar. The pair has been so far been unable sustain itself above 0.9950 for some time, with the Canadian economy being rather strong compared to their southern cousin's in the USA. The greenback is making something of a comeback however, for reason's I am yet to truly grasp, and might push this pair back towards par if the US economy can sustain some growth or even start to show signs of improvement. With another round of 'Fiscal Cliff' talks looming in February-March it's yet to be seen if the Greenback is up to the task. Resistance for the USD/CAD will be solid at 0.9950-9960 and again at 0.9980-1.00. The 6 month high sits at 1.0056 and was set on November 16, after which the pair fell 240 pips +/- to last week's low at 0.9815 before printing a Bullish Engulfing Candle on the Weekly Chart. If the pair fails to close above 0.9950, and breaks yesterday's low at 0.9909 we have a pretty clear shot down to the Weekly S1 at 0.9850 with only the Monthly and Weekly Pivots within 10 pips of each other at 0.9904 + 0.9897. An ascending trend-line will offer additional support at the Monthly S1 around 0.9838 before hitting the Weekly S2 at 0.9783.
Happy Trading!