USD / CAD breaks last week’s high
The USD / CAD is trading at a three-month high as the market struggles with a strong US dollar, a fading reflection trade and a fall from yesterday’s decision by the Bank of Canada.
In no case were there clear sales signals for the loonie, but positioning in CAD was overcrowded and squeezing appears to be in progress.
The next resistance zone is the 200-day moving average of 1.2629, followed by a range of 1.2654 in April. If it all gives in, it could be a viscous foundry trade up to a high of 1.20.