What looked inevitable finally became inevitable and USD/CAD broke above the very round 1.10 level. The peak so far has been 1.1030, still shy of resistance at 1.1030.
However, despite a correction of some currencies against the greenback, the Canadian dollar seems unable to recover at the moment, and is holding on above 1.10.
The forex calendar is not full of important Canadian events later in the week: we have the Capacity Utilization Rate, which doesn’t usually move markets, and later the New Housing Price Index (NHPI), which could have a bit more impact, but nothing drastic.
Prices have oil have been drifting down, therefore not providing any support to the C$ but not hitting it seriously.
All in all, the next moves depend on the flows, which seem favorable to the greenback rather than the loonie. If this happens indeed, the next level to watch is 1.1050, followed by 1.1111 and 1.1224.
For more, see the C$ forecast. Here is a 30 minute chart showing how Dollar/CAD broke above 1.10 and remained there:
