Chart of the Day: USD/CAD

Blake Morrow Forex Analytix

The USD/CAD turned from the 1.3400 level today and that was important price action. The reason: It was major channel resistance from the March highs. This is significant as it suggests that a break above the 1.3400 level could kickstart a squeeze back towards the 200dma. Two other things you should note: 1) The pair put in a false breakdown last week below the 1.3310 level. 2) As other major currencies have rallied substantially against the USD in recent weeks, the underperformance of the CAD is noticeable. If you are long CAD in some form, you are probably well aware of this, especially against the USD. If you put all this information together, the risk of a USDCAD upside move is building.

Author

Blake Morrow

Forex Analytix

Blake Morrow spent most of his professional career as the Chief Currency Strategist for Wizetrade group for 15 years, and then the Senior Currency Strategist for Ally Financial after the acquisition of Tradeking which owned the Wizetrade Group.

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