USD CAD Reversal Bottom Confirmed

Weaker equity and crude oil markets helped apply downside pressure onthe Canadian Dollar while subsequently boosting the USD CAD. Thesell-off in the Canadian Dollar was most likely profit-taking after therecent rise.

Intraday Analysis

USD CAD

Weaker equity and crude oil markets helped apply downside pressure on the Canadian Dollar while subsequently boosting the USD CAD. The sell-off in the Canadian Dollar was most likely profit-taking after the recent rise.

This morning’s trading action confrimed the closing price reversal bottom in the USD CAD on the rally through 1.0765.  Gains were limited, however as the market reached a minor 50% price at 1.0782.

Looking at the short-term range of 1.0630 to 1.0784, a pullback to 1.0707 to 1.0689 must hold or the potential bottoming formation will begin to show signs of failing.