USD/CAD falls to a fresh 10-week low as the topping formation nears a test

USD/CAD down to the lowest since late July

Canada was off on holiday yesterday so we’re seeing elevated flows in USD/CAD. The market is also coming around to the realization that oil prices are at a 7-year high, along with all that entails for Canadian terms of trade and investment.

We’ve edged below last week’s lows now as risk sentiment stabilizes and oil prices chop around $80.75.

The technical level to watch is 1.2422, which is the late July low.

USD/CAD down to the lowest since late July
I’ve highlighted the head and shoulders top in this pair over the past week and how the fundamentals also align with a drop, targeting 1.20.

The picture in CAD/JPY is even rosier and that pair is now testing the 2017 highs.


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