USD/CAD rises to a high of 1.3324 on the day
Yesterday’s high of 1.3328 is within reach now and a break above that will see price trade to its highest level since June once again. The loonie is the worst performing major currency on the day despite the recovery in oil prices as we begin the session. It was a similar story for the currency yesterday as it failed to follow the aussie and kiwi higher despite a rebound in risk.
The near-term chart shows that buyers are still maintaining the momentum in a move to the upside today and price looks poised for a move higher if the daily close manages to stay above the July high of 1.3290 for a second day running:
Looking at the daily chart, price looks to be breaking out towards the June highs where the 76.4 retracement level @ 1.3384 helped to stall the upside move. The key risk event in today’s trading will be Powell’s speech so that will be a key factor in sizing up whether or not a move towards that level will be justified.