The Loonie (USD/CAD) as it is known to us Canucks seems to have found some support at a previous support level of 1.0285 which is also in sync with the 200EMA (black line of the chart). The candle pattern itself suggests that the Canadian Dollar might resume its uptrend against the US Greenback, which shows either possible USD strength or just CAD weakness or both.
Last week’s low came within earshot of another support level at 1.0175, reaching a low of 1.0182 before reversing. If the current support level can hold, we could see this pair test the next level at 1.0400 very soon, and 1.0500 is not far off where the pair found resistance previously.
If the support at 1.0285 gives way, as well as 1.0175, then parity is the most likely target where there is plenty of support and buyers will no doubt step in. Until then, a break of last week’s high will have this trader interested in buying up to the 1.0500 area at least.
Happy Trading