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USD/CAD is on the highs of the day, up 175 pips to 1.3034.
That places the pair inside hanging distance of the closing excessive for the 12 months, which was at 1.3037 and set on June 17. That day they pair additionally set the intraday excessive at 1.3079.
The loonie is the second-best performing G10 foreign money this 12 months after the US greenback. However because the market shifts its focus to a world progress slowdown, it is susceptible.
Technically, the double high at 1.3079 was unfavourable for the pair however the lack of follow-through to the draw back previously three weeks together with the massive soar right this moment suggests additional upside — one thing I have been calling for.
A pop of the upside and continued stoop in vitality/commodities might elevate the pair to 1.36/1.37 within the subsequent few months. The measured goal of the damaged double high can be 1.36.
I spoke more-extensively about my playbook for the Canadian greenback (and the euro) final week on BNNBloomberg:
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