As long as the Canadian dollar, trades above the big psychological number 1.3000 the bulls remain in control. However, we can’t rule out a short-lived sell off all the way down until we retest the support level 1.2920 from where we should expect the bulls to show up again. Only a daily break and close below 1.2920 will signal that a significant swing high was put in place at the level 1.3380.
On the upside the first level of interest comes at pivot point 1.3125 followed by 1.3380 which can open up the door for a retest of the big round number 1.3500 if we managed to get a daily close above it. The stochastic indicator is coming close to reach oversold readings so a bounce might be in the short horizon. The Canadian economic calendar doesn’t have much to offer in terms of risk events as there are no big shifts in the BOC’s monetary policy.
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