USD/CAD Upside Momentum

The US dollar has been strengthening against major currencies, most obviously to the Canadian dollar. The USD/CAD pair reached a high of 1.3380 at the end of June and is now trading around 1.3200. The exchange rate has been trading steadily to the upside since the beginning of the year when it was floating around 1.2250.

The strong momentum is both due to fundamentals and technicals. Fundamentally, the pair has been enjoying solid support by strong US economy, low unemployment data and raising rates.


Technically, we had a few successful support level tests during the year which boosted the pair to its highest high.

First support level is seen at 1.3100 while first resistance level is seen at 1.3380.

Chart: USD/CAD H4