The USDCAD continues its advance above the big round number 1.3000, but stalled near the resistance level 1.3220. The bulls need now a daily break and close above 1.3220 to open up the door for another attempt to break above the double top pattern established at 1.3381,which is also the high of 2018. As long as we trade above 1.3000 on a daily closing basis the upside should prevail. On the downside, the first support level comes at 1.3070, but only a break below 1.3000 can open the door for a retest of the support level 1.2920.
We also have an oversold reading on the stochastic indicator that suggests more upside is in the cards. The Canadian economic calendar doesn’t have any major risk event that can cause a shift in the volatility. The only notable risk event is the ongoing NAFTA negotiation between the US and Canada. Any news headlines can cause a spike in volatility, so traders should keep an eye on the news section for this event.
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