USD/CAD rises to the highest since August
- Major technical level broken decisively
- The break comes on major economic news
The breakout in USD/CAD today has all the hallmarks of a good one. Resistance at 1.2920 was tested three times late last year and held but has broken in a big way. It comes on major, real worries about NAFTA and trade with the US.
This is a tough move to fight.
There is always the risk the US has a change of heart on trade but right now the fundamentals and technicals are aligned. In addition to the trade trouble, Canadian data has disappointed since the start of the year.
