USD/CAD is trading dangerously close to a mid-term resistance in the face of 1.3320. The pair reached a high of 1.3313 during Friday's closing hours and then gave in to bearish pressure making a low around 1.3185. USD/CAD is now trading at 1.3151, which appears to be safely below the potential breakout. However, main trend on the short-term remains bearish and with current December rate hike rumors on the table the US dollar might be destined to make new highs.
On the bearish side we have some advantages with price already below the 200SMA and about 200 points below resistance. These factors may further strengthen the bearish camp and plunge the price lower to a first support level at 1.3120.
Whatever the case, the rest of the year looks very very exciting with a possible rate hike, the US elections, a Brexit and cheap Gold.
Chart: USD/CAD D1
Very helpful assessment.
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