USD/CAD falls under the 30 July low of 1.2422, final seen at 1.2409
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Sellers shall be trying to breach 1.2400 subsequent and there is not a lot help past that because the draw back momentum may prolong again in the direction of the area of 1.2200 to 1.2300.
The 61.8 retracement degree of the swing transfer greater from Might to August is seen at 1.2367 so one can maybe level to that for some minor help within the meantime.
There are a variety of good issues working in favour of the loonie currently however surging oil costs proceed to be the obvious catalyst. WTI is buying and selling again up above $81 at the moment, 0.8% greater, and that continues to maintain the forex underpinned.
In the meantime, the greenback will not be wanting too sizzling regardless of rising wage pressures from yesterday’s US CPI report so there’s that to contemplate when weighing sentiment this week.
I would nonetheless argue that the loonie continues to be favoured for additional beneficial properties at this stage and CAD/JPY can also be one other key pair to look at because it climbs to its highest since January 2018 and closes in on key resistance round 91.58-64 for the time being.