This is turning into the worst week for the Canadian dollar in a long time. USD/CAD has gained for four straight days, climbing more than 210 pips to the highest since 2009.
Technically, overbought indications continue to flash but until the pair shows some kind of reversal, or at least an extended period of flatlining, it’s extremely dangerous to fight the momentum. There is some talk about the BOC shifting neutral next week but I don’t see it happening.
In the meantime, the measured target of the range/wedge breakout from December is around 1.09. Technically, today’s high broke the 2010 high and there is very little other resistance until close to 1.10.
USD/CAD technical analysis