The Canadian dollar has been resilient of late, but it cannot ignore the strong US data. A second day of excellent figures may have marked a bottom for USD/CAD.
And while the rally of the C$ may have stopped, we can clearly see well separated trading ranges for USD/CAD.
The Canadian dollar enjoyed a very nice rally following the publication of strong inflation and a rise in retail sales on Friday. USD/CAD finally broke down below the 1.0810 level it was hovering above.
It temporarily settled above 1.0750. The pair then continued lower in the wake of the new week and found an even lower bottom at 1.0715.
The leap in US home sales to the highest in 6 years and the jump in consumer confidence to the highest in nearly 6.5 years already sent to USD/CAD towards the top of the range at 1.0750.
Here is how it looks on the chart:
The next level below is 1.0660. For more, see the Canadian $ prediction.
