Today’s forex session has been a wild one for the USD/CAD. Rates have once again tested the waters above 1.3500 before retracing. Rollover in the WTI crude oil futures contract, as well as a delayed reaction from BoC Chairman Poloz’s Thursday presser, have prompted the market turbulence.
As of this writing (about 12:30 PM EST), the Loonie is hanging around the 1.3475 value area. In the event we see weekly settlement beneath the session high of 1.3513, a Triple Top formation will set up on the daily chart.
USD/CAD Puts In An Active 24 Hours
The early Thursday U.S. session brought a limited trading range and muted action to the Loonie. Even as Poloz stating the BoC’s views toward the Canadian economy, the USD/CAD showed little interest. Since then, we have seen the pair’s weekly range extended to both the top and bottom.
Here are the levels to watch for the remainder of today’s session:
- Resistance(1): Psyche Level, 1.3500
- Support(1): Daily SMA, 1.3454
- Support(2): Bollinger MP, 1.3435
Overview: As of yet, the Loonie hasn’t been able to take out the 78% Weekly Retracement at 1.3532. However, the pending Triple Top formation has set up in the vicinity of this level. All in all, 1.3500-1.3532 is a major area of resistance ― if it finally gives way, look for a test of 2018’s high (1.3660) to develop as soon as WTI crude fades below $60.00.