USD/CAD (current price: 1.3085)
The pair surged past its prior short-term high near 1.3015 yesterday as the early weakness in oil and precious metals led to selling pressure in commodity-currencies. The Canadian Dollar also suffered from the bullish sentiment towards the Dollar following the moderately hawkish statements by the Fed, in its FOMC Meeting Minutes on Wednesday. USD/CAD might reach the 1.32 resistance before the current upside momentum fades.
Our assessment: USD/CAD rose by around 5% since hitting 1.245 just 3 weeks ago. The pair quickly got close to the flat 200-day MA, currently at 1.335, which we have been monitoring as a possible target for the correction.
