The downfall of the Canadian dollar continues. Against the US dollar, the loonie is now trading at levels last seen in September 2010.
USD/CAD rose above the peak of 1.0658 recorded in October 2011 and reached a high of 1.0663. At the time of writing, the move lacks conviction and the pair retreated back under 1.0650.
Here is the long term daily chart which shows the support and resistance lines:
More peaks are close by: the pair made three sharp moves in 2010, all peaking between 1.0660 and 1.0675. The latter level was seen in June 2010. Even higher levels, of over 1.07 were last seen in May 2010.
Serious resistance above this area appears at 1.0780, which was a peak in February 2010 and a bottom back in in May-June 2009. Even higher resistance is the peak of 1.0850 seen in May 2010 and in October 2009. Above 1.0850, the round 1.10 line worked as resistance in 2009.
Below, the pair has support at 1.01.0610, followed by 1.0565. For more, see the Canadian dollar forecast.
The Canadian dollar has been on the back foot due to several reasons: the drop of commodity currencies such as the Aussie and the kiwi, the not so impressing demand from the US, and the cheap prices it receives for its oil.
