USD/CAD is at the lows of the day, down 37 pips to 1.0947 and falling to unchanged on the week.
The driver yesterday was dovish comments from Poloz at Jackson Hole but a push toward 1.1000 in Asia stalled at 1.0998. It’s the fifth failed attempt at the key level in the past month. The short-term level to watch now is yesterday’s low of 1.0943. A close below there would mark a bearish engulfing candle on the chart.
But in the bigger picture, a bullish inverted head and shoulders pattern is brewing and it points to fresh highs around 1.14.
USDCAD daily
The technicals are mixed and with the inbound M&A boosting the loonie via the Burger King/Timmy Ho’s deal, I think there are better places to buy USD strength than here.
