USD/CAD (current price: 1.3015)
The Canadian Dollar rallied for 7-days in a row now, pushing the pair below the 1.29 level for the first time in more than one month, following the re-test of the 1.32 level in late July. The pair closely tracks the movements of oil and the recent strong rally put pressure on it again following the 3-month correction in the currency. The cross could re-test the lows near 1.2450 in the coming weeks, but on the short-term a bounce is possible as the momentum indicators are turning oversold thanks to the relentless rally.
Our assessment: USD/CAD fell way below the crucial 1.30 level that has dominated trading for the last several months, and a re-test of that line is likely before a bearish continuation.
