USD/CAD (current price: 1.3091)
The Canadian Dollar has been trading below the 1.30 level compared to the Dollar for two days but the pair got back above the key support/resistance line on Friday. The mixed session in commodities coupled with the hawkish Fed rhetoric was enough to send the Loonie lower against the Dollar. The cross might be ready for a new leg higher especially if oil finally enters a correction after its relentless rally. Traders will likely focus on U.S. news this week as the Fed decision remains the most important event of June.
Our assessment: USD/CAD could be headed above the 1.32 resistance that held back the advance in the past couple weeks, with further resistance around 1.335 serving as a longer-term target for the rally.
