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USDCAD: Threat switches back higher

Hi there this is Steve Miley on behalf of forextraders.com and here we’re taking a look at the US dollar versus the Canadian dollar spot FX rate.

Well the USDCAD has been sliding lower in here over the past week or so, but a really sharp, aggressive rebound in here from above support at the 1.32 / 1.3201 area has seen a surge up through this 1.3310 recent range peak from the second half of September. That’s rejected a more negative theme and also put up a more positive tone.

Also reversing above this down trend-line here, and also probing this longer term trend-line that comes all the way from the late part of May of this year, so, probing above there as well.

So through 1.3310 and that longer term down trend-line and getting up closer to this 1.3339 impulse resistance up to 1.3334/5 area.

So the real risk going into today is for an extension of that strong rally – potentially a little dip, but we’re looking for that to hold above 1.3285 and looking for upside for 1.3335 / 1.3339 area, and then potentially up to challenge this key level up here of 1.3383.

Only down through 1.3285 today would see a slightly more negative tone.

That’s it for now. Don’t forget to follow us and check us out on our YouTube channel and as ever in here I’ll be back with you soon.

Have a great trading day.

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