There is no rest for the Canadian dollar: after breaking to 4 year lows against the greenback, the lonely loonie took only a short break before another move higher.
The new peak for USD/CAD is 1.0978, just 22 pips from the round number of 1.10, but even closer to the next resistance level. Is the pair overbought?
Dollar/CAD made a big breakout last week, and continued higher. We can see on the weekly chart that it is somewhat stretched in comparison to trading ranges of previous weeks:
1.10 is a round number eyed by many, but 1.0990 served as resistance back in September 2009. A break above this line will send the pair to levels last seen one month beforehand. Above this level, resistance appears at 1.1125.
On the downside, 1.0850 serves as support, followed by 1.0750. For more lines, events and analysis, see the C$ forecast.
Tomorrow, Canada is scheduled to report the Foreign Securities Purchases: inflows of cash into Canada. The positive numbers are expected to grow from 4.41 billion to 7.2 billion.
