Wednesday will be particularly devoid of any groundbreaking data out of both the United States and Canada as investors get a respite after the flurry of US economic indicators that kicked off the beginning of the week – the lone exception of note for the pair will be the EIA Crude Oil Stocks Change (October 12) at 14:30 GMT. In other news that is pertinent to the CAD, the price of crude has settled in the region of USD $92.20, up +0.20%
“The USD/CAD failed to stabilize yesterday below 0.9785 which ended the downside correction and triggered an upside move which carried the pair to stabilize today above 0.9850, where the pair also breached a previous top at 0.9831. Momentum indicators likely will cause heavy volatility however, as trading above the ascending trend line at 0.9785 was confirmed and supports the extensions of the current upside move.” writes the technical analyst team at ICN.com.
From a technical perspective, the cross is testing support at 0.9850 in these moments. Moreover, ICN.com analysts have pinpointed the next supports at 0.9825, then 0.9800 (key psychological barrier), and finally 0.9785. Conversely, a break above 0.9880 will trigger resistive means at 0.9900 and 0.9925.