“The bearish Butterfly Pattern controls trading and we can see that the upside move seen was limited below 1.0040 over the four-hour basis, which keeps the pattern intact. We expect new downside attempts and a possible test to 0.9920 areas, which if breached will extend the downside move toward 0.9850. Finally, the stochastic signals lower and that the RSI is gradually losing the upside momentum.” warns the ICN.com Analyst Team.
The USD/CAD is trading near opening levels during European trading Monday morning amidst a shortened trading week in the United States given the observance of Thanksgiving, and as such ICN.com analysts point to supportive measures at 0.9990, followed by 0.9965, onto 0.9920. On the ascension or in the event of a prolonged thrust upwards, a breach of the 1.0000 level will trigger short-term resistances at 1.0040 and 1.0095.
In terms of data, there will be an absence of any major announcements or indicators out of the US and Canadian economic today s, with the exception of a token amount of some home sales figures in the US at 15:00 GMT. Regarding the strength of the CAD, the price of crude is currently trading at USD $87.90, up +2.87% on the day so far.