1.0658 was the high back then and we managed 1.0654 today. We’ve opened December as we left November and we’re close to the 100 mma at 1.0631. Seeing out the month above that will be bullish for the pair to push into the 2009/10 highs and towards 1.100, but as usual we have some hurdles in the way.
USD/CAD monthly chart 02 12 2013
First and foremost, the high at 1.0658 needs to be taken out and then we have the 3 month Jun-Aug 2010 highs at 1.0680. That looks to be a particularly strong level, so one to pay close attention to. Above there we have the 38.2 fib of the March 2009 hi/lo at 1.0802 and a break of that and the May 2010 high at 1.0850 will open the door right up to the 1.100 area.
As we know with the loonie it will be slow going probably and so it’s likely the tech will play a big part. With the December FOMC in a couple of weeks we could be all over the shop as the market starts trading the expectations, so bear that in mind.
