While USD/CAD was one of the cleaner pairs for USD-weakness in Q2, the past month and change has seen a shifting backdrop in the pair.
The 1.3750 level remains key and this was the price that set the low in early-May, leading to a rally up to 1.4000, which sellers defended well. That drove another fresh low but bears suddenly got shy above the 1.3500 level, leading to a pullback in June.
Since then - there's been a build of higher-lows with the trendline produced by the June and early-July swing low bringing another support inflection two weeks ago. And then the rally from that finally led to a break of the ascending triangle formation which had built with resistance at 1.3750.
Now that the USD is pulling back, so too is USD/CAD, and interestingly, this could be one of the more attractive venues for looking at USD-strength continuation scenarios given that recent bullish structure. - js
The 1.3750 level remains key and this was the price that set the low in early-May, leading to a rally up to 1.4000, which sellers defended well. That drove another fresh low but bears suddenly got shy above the 1.3500 level, leading to a pullback in June.
Since then - there's been a build of higher-lows with the trendline produced by the June and early-July swing low bringing another support inflection two weeks ago. And then the rally from that finally led to a break of the ascending triangle formation which had built with resistance at 1.3750.
Now that the USD is pulling back, so too is USD/CAD, and interestingly, this could be one of the more attractive venues for looking at USD-strength continuation scenarios given that recent bullish structure. - js
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Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.